Boeing Breaks $100B in Revenue

Things are going very well for Boeing: on Wednesday, this week, the aerospace giant reported 2018 was its best year yet with $101.1 billion in sales.  This is not only significant, however, because the numbers are better than ever, but the fact of the matter is that Boeing had never breached $100 billion in sales before. As you might expect, this very good news helped to boost shares by nearly 7 percent, even as the US faces uncertainty against a potential trade war with China. 

This is not only a major win for the airplane maker, but for the airline industry as a whole.  After many years of struggles, particularly after 9/11, the airline industry has been looking for more ways to improve revenue without having to cut back on too many amenities and services that travelers demand (mostly because they have grown accustomed to them). 

Boeing, of course, builds passenger and commercial plans and it is in the commercial sector that they have seen so much growth. In Q4 alone, Boeing delivered 238 new commercial planes, which is 14 percent more than one year ago.  In the whole of 2018, the company delivered 806 total commercial planes, which is up 6 percent over deliveries from the year prior. Looking forward, then, Boeing now expects to do between 895 and 905 new commercial aircraft deliveries in the next year. 

Another way to look at this, of course, is in financial terms.  For the year, Boeing Co saw a net income of $3.42 billion. This translates to $5.93 per share with non-recurring gains earnings adjusted to $5.48 per share. But even with that somewhat significant adjustment, the boost is still much bigger than the $4.52 industry analysts had anticipated.  It is also still notably higher than the $.507 per share core earnings the company posted for the same period one year ago. 

In addition, the Chicago-based company saw revenue reach $28.34 billion, easily passing the analyst-projected $26.65 billion and annihilating last year’s $24.77 Q4. As such, Boeing now expects 2019 full year earnings to land between $19.90 and $20.10 per share with revenue ranging between $109.5 and $111.5 billion.

And, of course, the US economy relies on boosts like this from big companies.  Sure enough, Boeing’s good news translated to better outlook for many companies.  The Dow Jones Industrial Average, for example, climbed more than 300 points the same day.

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