Boeing's Stock Drops After Earnings Miss Expectations

Boeing Co.'s stock slumped 1.9% in premarket trade Wednesday, after the aerospace giant missed first-quarter profit expectations, while beating on sales. Earnings for the latest quarter fell to $1.22 billion, or $1.83 a share, from $1.34 billion, or $1.87 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.74, below the FactSet consensus of $1.84. Revenue rose to $22.63 billion from $22.15 billion, beating the FactSet consensus of $21.50 billion, as a miss by its commercial airplane unit was offset by better-than-expected revenue from the military aircraft, network and space systems and global services and support businesses. Boeing affirmed its 2016 outlook for adjusted EPS of $8.15 to $8.35 and revenue of $93.0 billion to $95.0 billion. The FacSet 2016 consensus for EPS is $8.54 and for revenue is $93.9 billion. The stock has lost 7.9% year to date through Tuesday, while the Dow Jones Industrial Average has gained 3.2%.