Boeing's Stock Surges After Profit And Sales Rise Beat Expectations

Shares of Boeing Co. climbed 1.3% in premarket trade Wednesday, after the aerospace and defense contractor beat profit and sales expectations, but provided a downbeat sales outlook. Earnings rose to $1.63 billion, or $2.59 a share, from $1.03 billion, or $1.51 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $2.47, above the FactSet consensus of $2.34. Revenue slipped 1% to $23.29 billion, but beat the FactSet consensus of $23.13 billion. Commercial aerospace sales rose 1% to $16.24 billion, just shy of the FactSet consensus of $16.53 billion, while military aircraft sales declined 18% to $2.62 billion but beat expectations of $2.61 billion. Network and space systems sales fell 8% to $1.80 billion, but was above the FactSet consensus of $1.76 billion. For 2017, Boeing expects adjusted EPS of $9.10 to $9.30, surrounding the FactSet consensus of $9.25, while revenue guidance of $90.5 billion to $92.5 billion was below expectations of $92.96 billion. The stock has soared 29% over the past 12 months, while the Dow Jones Industrial Average has rallied 25%.