The Boeing company (NYSE: BA) reported third-quarter revenue of USD 24.3 billion with GAAP earnings per share of USD 3.06 and core earnings per share (non-GAAP) of USD 2.72 reflecting strong deliveries, services and delivery mix, and overall solid execution, the company said.
The company´s cash flow guidance is increased to USD 12.5 billion from USD 12.25 billion, driven by improved performance.
Full year EPS guidance is increased to between USD 11.20 and USD 11.40 from USD 11.10 and USD 11.30 and core earnings per share (non-GAAP) guidance is increased to between USD 9.90 and USD 10.10 from USD 9.80 and USD 10.00 driven by a lower-than-expected tax rate.
Full year segment guidance is updated, reflecting the realignment of the company´s services businesses into Boeing Global Services (BGS).
Operating cash flow in the quarter of USD 3.4 billion was driven by solid operating performance and favorable timing of receipts and expenditures (Table 2). During the quarter, the company repurchased 11 million shares for USD 2.5 billion, leaving USD 6.5 billion remaining under the current repurchase authorization. The company also paid USD 0.9 billion in dividends in the quarter, reflecting a 30 percent increase in dividends per share compared to the same period of the prior year.
At quarter-end, Boeing Capital´s net portfolio balance was USD 3.4 billion. Total pension expense for the third quarter was USD 100 million, down from USD 453 million in the same period of the prior year.
Revenue increased in other unallocated items and eliminations primarily due to timing of eliminations of intercompany aircraft deliveries, including those accounted for under operating lease. Other unallocated items and eliminations earnings decreased primarily due to timing of eliminations of intercompany aircraft deliveries, offset by higher deferred compensation. The effective tax rate for the third quarter increased to 30.0 percent primarily due to discrete tax benefits recorded in the prior year.