Boeing 1Q earnings: revenues down, profits up

April 26, 2017: Boeing today reported first quarter revenues that were lower in the year earlier period in part because of fewer commercial airplane deliveries, but the operating margin and net earnings were higher.

There were fewer 737 deliveries as Boeing transitions from the 737NG to the 737 MAX. First deliveries of the MAX are due this quarter.

Likewise, Boeing is beginning a transition to a third family member of the 787. The first 787-10 rolled off the production line this month, beginning flight testing. The first delivery is scheduled for next year.

Revenue was down 7% YOY, to $21bn. Operating margin was up 1.7 points to 9.6%.

Guidance increased

Boeing increased its full year guidance by 10 cents, upping the earnings per share to $9.20-$9.40.

Absent from the earnings press release was any information about revenue and profit from Boeing Global Services from Boeing Commercial Airplanes, except for an oblique reference that revenue grew, offset by fewer 737 deliveries.

Boeing revealed BGS revenue for the Defense unit of $2.3bn, down 9% from $2.6bn, reflecting a earnings decline to $318m vs $340m.

With Boeing’s emphasis of future BGS revenue targets of $50bn and how services is going to become a key part of future profits, the absence of transparency of total Services revenue and profit gripes some analysts.

The full press release is here. The earnings call is at 10:30 EDT today. The webcast is here.

9 Comments on “Boeing 1Q earnings: revenues down, profits up

      • At that rate it will take another 85 quarters to be fully amortized. Thats another 7 years ?
        Lets hope theres no lull in widebody orders….. too late

        • I am happy to say that I never have experienced 12 quaters each year, – under normal conditions 85 quaters is equal with 21 years 🙂

          BUT, I think when BCA have finished the old backlog of early ordered 787-8, – and the product mix is like 787-9 / 787-10 the average sales Price will be better, – and at the same time will BCA probably be able to produce cheaper.

          • Thanks for picking up my mistake, even if they double down on the amount, that would still be 10 years more.
            They have to maintain production rate AND get some decent price cuts from their main contractors. Boeing of course only makes the fin and the rear fuselage themselves.

        • Well the important thing is, at least as far as Boeing is concerned, is it’s no longer losing money per unit and is becoming a much needed cash flow generator
          Apparently they are looking a savings of at least 2-3 million per craft by going to printed titanium parts in the future…

          “Printed titanium parts expected to save millions in Boeing Dreamliner costs”
          http://www.reuters.com/article/us-norsk-boeing-idUSKBN17C264

    • Took my thoughts I was planning to put to paper right from me! LOL $2 BILLION+ in program losses, and still throwing money at it. This is INSANE. Any other company–except for one going down the tubes, or Lockheed (that apparently gets to bill all of its to the feds) would have had its board step in–and FIRE the CEO over this type continuing fiasco. But this is the outfit that let McNerney and Co. massively screw up on the 87, and walk away with tens of millions and the chairmanship! Is this country great or what? (Sarcasm!) LOL

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