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Record Boeing earnings soar past Wall Street expectations

In this Feb. 5, 2018 photo, a Boeing 737 MAX 7, the newest version of Boeing's top-selling airplane, is displayed during a debut for employees and media of the new jet in Renton, Wash. (Elaine Thompson / AP)
By Dominic Gates Seattle Times

With Boeing’s jet deliveries climbing ever higher, the company released its 2018 financial results Wednesday, delivering record revenue, record profit and record cash flow for the year that well exceeded Wall Street expectations.

The key metric the stock market currently watches to judge Boeing’s performance is cash flow – a measure of how much cash is generated by regular operations – which came in at $2.95 billion for the quarter and $15.3 billion for the full year.

Boeing provided guidance for the year ahead, projecting a continued gush of cash. The company estimates that it will build approximately 900 airplanes in 2019, fully 100 more than the record number in 2018, generating cash flow that will surpass $17 billion.

Boeing Chairman and Chief Executive Dennis Muilenburg, hinting perhaps at the expected launch of a new 797 airplane in 2019, offered reassurance that the company’s profit and cash generation leaves it in a strong position to take on big new investments.

“Our financial performance provided a firm platform to further invest in new growth businesses, innovation and future franchise programs, as well as in our people and enabling technologies,” Muilenburg said in a statement. “In the last 5 years, we have invested nearly $35 billion in key strategic areas of our business, all while increasing cash returns to shareholders.”

In the fourth quarter, Boeing made a net profit of $3.4 billion, or $5.93 per share, on revenue of $28.3 billion, compared to the previous year’s $3.3 billion profit, or $5.49 per share, on revenue of $24.8 billion.

For the first time, Boeing’s revenue for the full year surpassed $100 billion, coming in at $101.1 billion, compared to $94 billion in 2017.

For the full year, Boeing made a net profit of $10.5 billion, or $17.85 per share, compared to the year ago figure of $8.5 billion, or $13.9 per share.

That means Boeing’s profit margin rose to 14.7 percent, brushing against the “mid-teen” target management had set itself over the past two years.

The strong results pushed Boeing stock up more than 6 percent in early Wednesday trading in New York.