The Boeing Company [NYSE: BA] reported first-quarter revenue of $23.4 billion reflecting higher commercial deliveries and mix, defense contract volume and services growth (Table 1). GAAP earnings per share increased to $4.15 and core earnings per share (non-GAAP)* increased to $3.64 reflecting strong performance across the company.
The company’s cash flow guidance is increased to between $15.0 and $15.5 billion, driven by improved performance. Full year EPS guidance is increased by $0.50 to between $16.40 and $16.60, and core earnings per share (non-GAAP)* guidance is increased to between $14.30 and $14.50 on performance.
«Across Boeing, our teams performed at a high level in the quarter, driving revenue and earnings growth at all three business units, increasing profitability and operating cash flow, and delivering more value to our customers,» said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg. «Customers continue to recognize the value of our products and services, with strong orders booked in the quarter for defense, services and commercial offerings, including 221 net commercial aircraft orders.»
«During the quarter we captured important new business, including an initial contract for 28 F/A-18 Super Hornets for Kuwait, a Ground-based Midcourse Defense program contract extension from the Missile Defense Agency, and we delivered the first Space Launch System intertank hardware to NASA. We achieved the first flight of the 737 MAX 7, and delivered the first 787-10 Dreamliner and the first 737 MAX 9. Within our services business, we received a follow-on contract to support the Royal Canadian Air Force’s Chinook fleet, captured a landing gear exchange contract for Aeromexico, and released Self-Service Analytics to complement our digital solutions portfolio. All of these milestones demonstrated the value we bring to our customers through the strength of our One Boeing offerings.»
«Our team’s strong first-quarter performance, combined with the positive market outlook across our businesses and our confidence in executing on our production and development programs, gives us a solid foundation to raise our guidance for the year. Going forward, we remain focused on our disciplined growth strategy, improved profitability and cash flow to ensure we meet our commitments to our customers and our shareholders.»
Operating cash flow in the quarter of $3.1 billion reflects planned higher commercial airplane production rates, improved performance, and favorable timing of receipts and expenditures (Table 2). During the quarter, the company repurchased 8.9 million shares for $3.0 billion, leaving $15.0 billion remaining under the current repurchase authorization which is expected to be completed over approximately the next two years. The company also paid $1.0 billion in dividends in the quarter, reflecting a 20 percent increase in dividends per share compared to the same period of the prior year.
Cash and investments in marketable securities totaled $9.9 billion, compared to $10.0 billion at the beginning of the quarter (Table 3). Debt was $12.5 billion, up from $11.1 billion at the beginning of the quarter, primarily due to the issuance of new debt.
Total company backlog at quarter-end was $486 billion and included net orders for the quarter of $34 billion. Backlog was up from $475 billion at the beginning of the quarter, which has been adjusted to reflect the adoption of the new revenue recognition standard (ASC 606)…
