Low fuel prices have allowed the aviation industry to soar; Boeing sees great results.
Shares in Boeing are up over 4.5% on opening trading based on better than expected fourth-quarter earnings attained mainly from record commercial airplane orders in 2014.
Previous: $1.23B, or $1.61 per share in the same quarter a year ago
Actual: Net income of $1.47B, or $2.02 per share. Core earnings, which exclude some pension and other costs, rose to $2.31 per share from $1.88
The most lucrative segment was commercial airlines, where sales rose 15% for Boeing. Global Services & Support was also up by 2%, but offset by negative figures on Military Aircraft down 29%, and Network & Space Systems down by 4%. Total orders reached $37 billion for the quarter.
The success of commercial airplanes gave record figures, though the decrease in the U.S military defense budget made investors nervous at opening of trade on Tuesday, taking shares on a dive from the 133.58 closing price to opening at 131.01. Shares have since opened with an upward gap of 4.5%, climbing to highs of 137.16.
In December, Boeing raised its share repurchase authorization to $12 billion from $10 billion and said it would increase its quarterly dividend by 25 percent, according to Reuters. In the quarterly earnings report, Boeing confirmed a repurchase of 7.8M shares during the quarter for $1B. This decision supported the figures for the full year of 2014, giving an increase in Core EPS of 22% to a record $8.60 on record revenue of $90.8 billion; GAAP EPS of $7.38.
Boeing has set 2015 earnings per share at between $8.20 and $8.40, below the $8.64 a share forecast by analysts, according to Reuters and now seek to “continue to build on our commercial airplanes market leadership, strengthening and repositioning our defense, space and security business and working to better meet the needs of our customers by focusing on improving productivity, executing to development plans and delivering our industry-leading portfolio of innovative aerospace products and services,” as Boeing Chairman and Chief Executive Officer Jim McNerney says.
MT4 chart: BOEING
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