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Boeing (BA) Stock Flies to All-Time High After Q2 Earnings
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Shares of Boeing (BA - Free Report) soared to an all-time high on Wednesday morning after the company posted its second-quarter financial results.
Boeing reported earnings of $2.55 per share (excluding $0.34 from non-recurring items). The company’s strong earnings beat the Zacks Consensus Estimate of $2.32 per share. However, the airplane manufacturer’s revenue fell 8.1% to $22.74 billion, which just missed our consensus estimate of $23.01 billion.
Still, Boeing stock was up 8.54% through morning trading on Wednesday. Shares reached an intraday high of $230.82 per share, which also represents a new all-time high for the stock. Today’s movement marked the company’s biggest intraday gain since August 2009.
The company’s stock is trading hands at a rapid rate today. Boeing stock already moved 7.7 million shares on Wednesday—its average volume is 2.9 million.
Shares of Boeing are up 36% year-to-date and 60% in the last 12 months. Boeing is currently a Zacks Rank #2 (Buy) and scored a “B” for Value in our Style Scores system.
Great News For The Future?
So why did Boeing fly to a new high despite its revenue miss? One of the biggest reasons is the fact that the company reported operating cash flow of $5 billion, which more than doubled analyst expectations.
The airplane giant repurchased 13.6 million shares, which amounted to $2.5 billion worth of buybacks. Boeing paid out $900 million in dividends, marking a 30% increase year-over-year.
“Our teams are delivering better performance in every segment of the business, which is reflected in our strong second-quarter results and improved 2017 outlook,” Boeing Chairman, President, and CEO Dennis Muilenburg said in a statement.
“Our robust cash flow enabled us to return more value to shareholders, invest in future growth and in our people, including a plan to accelerate pension funding that also reduces risk and cyclicality in our business.”
The airplane maker delivered 226 commercial and defense-based aircraft in the second-quarter. But what might make investors more excited is that Boeing added $27 billion worth of net orders during the quarter, which helped balloon its already massive backlog to $482 billion.
Boeing’s 737, one of its most popular planes and its biggest profit drivers, accumulated a record number of orders in the quarter as well.
The company announced its plans to pay $3.5 billion worth of pension liabilities ahead of schedule. Boeing also now expects to buy back roughly $10 billion in stock this year.
The company reaffirmed its full-year 2017 guidance to deliver 760 to 765 airplanes. But Boeing now expects earnings of $9.80 to $10 per share, which is up from the $9.20 to $9.40 a share it previously projected.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce “the world's first trillionaries,” but that should still leave plenty of money for regular investors who make the right trades early.
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Boeing (BA) Stock Flies to All-Time High After Q2 Earnings
Shares of Boeing (BA - Free Report) soared to an all-time high on Wednesday morning after the company posted its second-quarter financial results.
Boeing reported earnings of $2.55 per share (excluding $0.34 from non-recurring items). The company’s strong earnings beat the Zacks Consensus Estimate of $2.32 per share. However, the airplane manufacturer’s revenue fell 8.1% to $22.74 billion, which just missed our consensus estimate of $23.01 billion.
Still, Boeing stock was up 8.54% through morning trading on Wednesday. Shares reached an intraday high of $230.82 per share, which also represents a new all-time high for the stock. Today’s movement marked the company’s biggest intraday gain since August 2009.
The company’s stock is trading hands at a rapid rate today. Boeing stock already moved 7.7 million shares on Wednesday—its average volume is 2.9 million.
Shares of Boeing are up 36% year-to-date and 60% in the last 12 months. Boeing is currently a Zacks Rank #2 (Buy) and scored a “B” for Value in our Style Scores system.
Great News For The Future?
So why did Boeing fly to a new high despite its revenue miss? One of the biggest reasons is the fact that the company reported operating cash flow of $5 billion, which more than doubled analyst expectations.
The airplane giant repurchased 13.6 million shares, which amounted to $2.5 billion worth of buybacks. Boeing paid out $900 million in dividends, marking a 30% increase year-over-year.
“Our teams are delivering better performance in every segment of the business, which is reflected in our strong second-quarter results and improved 2017 outlook,” Boeing Chairman, President, and CEO Dennis Muilenburg said in a statement.
“Our robust cash flow enabled us to return more value to shareholders, invest in future growth and in our people, including a plan to accelerate pension funding that also reduces risk and cyclicality in our business.”
The airplane maker delivered 226 commercial and defense-based aircraft in the second-quarter. But what might make investors more excited is that Boeing added $27 billion worth of net orders during the quarter, which helped balloon its already massive backlog to $482 billion.
Boeing’s 737, one of its most popular planes and its biggest profit drivers, accumulated a record number of orders in the quarter as well.
The company announced its plans to pay $3.5 billion worth of pension liabilities ahead of schedule. Boeing also now expects to buy back roughly $10 billion in stock this year.
The company reaffirmed its full-year 2017 guidance to deliver 760 to 765 airplanes. But Boeing now expects earnings of $9.80 to $10 per share, which is up from the $9.20 to $9.40 a share it previously projected.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce “the world's first trillionaries,” but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>