U.S. Markets closed

What Dreamliner Trouble? Boeing Sees Blockbuster Beat

Lifted by broad strength across its business units, Boeing (BA) managed to slough off the effects of a controversy with one of its marquee planes, as first quarter profit far exceeded Wall Street's expectations.

Recently, Boeing's 787 Dreamliner has been beset by battery problems that caused regulators in the U.S. and Japan to temporarily ground the plane. Analysts were concerned that the problems could erode Boeing's earnings.

Still, the aerospace giant managed to defy market's pessimism. Boeing posted quarterly earnings excluding items of $1.73 per share, a 24 percent jump from the $1.40 per share it saw in the comparable year-ago period. Revenue, however, decreased to $18.89 billion, from $19.38 billion a year ago, reflecting fewer deliveries of its troubled 787 Dreamliner.

"Our first priority in the days ahead is to fully restore our customers' 787 fleets to service and resume production deliveries," said Boeing's Chairman and CEO Jim McNerney in a statement. McNerney said that the company "worked around the clock to resolve the 787 battery issue," while ramping up deliveries of both the 737 and 777 planes.

"Our outlook for the year is positive, and our financial and delivery guidance is reaffirmed as we remain focused on the profitable ramp up in commercial airplane production rates, disciplined execution of our development programs, and continued growth in core, adjacent and international defense and space markets," the CEO added.

After the earnings announcement, Boeing saw its shares jump by more than three percent in extended-hours trading. (Click here for the market's reaction to Boeing's earnings report.) (BA)

Analysts had expected Boeing to report earnings per share of $1.49 per share on $18.80 billion in revenue, according to a consensus estimate from Thomson Reuters.



More From CNBC

  • George H.W. Bush Honored His Wife in a Subtle Way at Her Funeral
    News
    Time

    George H.W. Bush Honored His Wife in a Subtle Way at Her Funeral

    Former President George H.W. Bush paid a subtle tribute to his late wife, Barbara Bush, at her funeral on Saturday. The former president wore a pair of socks decorated with stacks of colorful books, in a nod to his partner’s longstanding commitment to advancing literacy. George H.W. Bush wore socks with books on them in dedication to Barbara at her funeral today.

  • The Trump tax cuts will benefit investors, not workers, this CEO says
    Business
    Yahoo Finance

    The Trump tax cuts will benefit investors, not workers, this CEO says

    Dozens of companies have given employees one-time bonuses on account of the tax cuts President Trump signed into law last year. In fact, ADP’s CEO recently told employees that investors, not workers, will see most of the benefits of tax cuts. At an internal town hall meeting on March 15, ADP CEO Carlos Rodriguez fielded an employee question on what the company planned to do with the savings from corporate tax cuts.

  • Colorado Was the First State to Legalize Marijuana. Now Its Governor Won't Rule Out Recriminalizing It
    Politics
    Fortune

    Colorado Was the First State to Legalize Marijuana. Now Its Governor Won't Rule Out Recriminalizing It

    As cannabis enthusiasts celebrate 4/20, the unofficial stoner holiday, the state that has led the nation in legalization says it may not always be so open to the drug. Colorado Governor John Hickenlooper tells CNN he is not ruling out making marijuana illegal again, as the state’s crime rate has been rising since recreational use of the drug was made legal in 2014. As of yet, there’s no research that ties the increased crime rate to the Colorado’s recreational pot law.

  • A 36-year-old who learned to invest like Warren Buffett explains Buffett's No. 1 rule
    Business
    CNBC

    A 36-year-old who learned to invest like Warren Buffett explains Buffett's No. 1 rule

    When Danielle Town found herself burnt out and even starting to get sick from her work as a corporate attorney, she knew she didn't want to keep working at the same breakneck pace for much longer. So she started brainstorming ways to retire faster. "I

  • Russia energy minister: US sanctions pose big risks for w...
    Business
    CNBC Videos

    Russia energy minister: US sanctions pose big risks for w...

    CNBC’s Steve Sedgwick reports on the OPEC meeting happening in Saudi Arabia, including his interview with the Russian energy minister Alexander Novak.

  • What's the Biggest Social Security Benefit I Can Get (and How Do I Get It)?
    Business
    Motley Fool

    What's the Biggest Social Security Benefit I Can Get (and How Do I Get It)?

    If you want to be financially secure in retirement, then making the most of Social Security can be critical in putting together a smart financial plan. The perfect retirement strategy involves a combination of Social Security benefits, private pension payments, and income from your own retirement nest egg. Social Security calculates how much money you get in monthly benefits based on your work history during your career.

  • Mobius says there’s a 30% correction coming for U.S. stocks
    Business
    MarketWatch

    Mobius says there’s a 30% correction coming for U.S. stocks

    Mark Mobius, the 81-year-old investment guru, believes the U.S. stock market is set for a 30% correction that would essentially wipe out the gains of the last two years. The renowned fund manager, who left Franklin Templeton, the American investment house, after more than 30 years in January, said “all the indicators” point to a large fall in the S&P 500 SPX, -0.85%  and the Dow Jones Industrial Average DJIA, -0.82%  . “I can see a 30% drop,” said Mobius, who launched one of the world’s first emerging market funds. “When consumer confidence is at an all time high, as it is in the U.S., that is not a good sign. “The market looks to me to be waiting for a trigger that will cause it to tumble. You

  • Kushner Cos. subpoenaed by feds after AP report
    Business
    Associated Press

    Kushner Cos. subpoenaed by feds after AP report

    The Kushner Cos. has been subpoenaed by federal prosecutors for information related to an Associated Press report that the company filed dozens of false documents about its buildings in New York City. The statement Thursday acknowledged that the federal subpoena arrived last month, a day after the AP reported the Kushner Cos. routinely filed false paperwork with the city stating it had zero rent-regulated tenants in buildings across the city when, in fact, it had hundreds. The AP report covered a three-year period when the real estate company was run by Jared Kushner, President Donald Trump's son-in-law who is now a senior adviser.

  • Do Pro-Trump or Anti-Trump Books Sell Better? Here's What the Data Shows
    Politics
    Time

    Do Pro-Trump or Anti-Trump Books Sell Better? Here's What the Data Shows

    Donald Trump has made America read again. Since the beginning of the year, every New York Times bestseller has been about the 45th president, according to CNN. To answer that question, we gathered data from the Times nonfiction list of bestsellers on every book explicitly about Trump since his election in 2016.

  • Big American tech companies are snapping up foreign-worker visas, replacing Indian outsourcing firms
    Technology
    CNBC

    Big American tech companies are snapping up foreign-worker visas, replacing Indian outsourcing firms

    A new study from the National Foundation for American Policy , shows that U.S. tech companies are relying more on skilled foreign workers using H-1B visas, while Indian outsourcing firms are losing their previous stronghold in the area. According to the study, four U.S. tech companies – Amazon AMZN , Microsoft MSFT , Intel INTC , and Google GOOGL – were among the top 10 employers for approved H-1B applications in FY 2017 (which ended September 30), and they all saw increases of more than 10 percent from the previous year.

  • Boeing delivers its first converted 737-800 cargo jet to West Atlantic Group (Photos)
    Business
    Puget Sound Business Journal

    Boeing delivers its first converted 737-800 cargo jet to West Atlantic Group (Photos)

    Boeing has converted its first 737-800 Next Generation passenger jet into a cargo aircraft and delivered it to Swedish air freight company West Atlantic Group. The conversion was done by Boeing Shanghai for the owner of the aircraft, GE Capital Aviation Services (GECAS), which is the airplane leasing and financing arm of the General Electric conglomerate. The converted freighter was flight tested and painted in Victorville, California. It will be used by West Atlantic to carry express cargo on domestic and short haul routes, Boeing said in a news release. The jet provides improved reliability, lower aircraft operating costs "and a better environmental footprint,” West Atlantic CEO Fredrik Groth

  • 'I Wrapped My Arm Around Her.' Southwest Passenger Describes Helping Victim After Engine Explosion
    News
    Time

    'I Wrapped My Arm Around Her.' Southwest Passenger Describes Helping Victim After Engine Explosion

    Just as Hollie Mackey was about to get up from her seat to go to the bathroom during Tuesday morning’s Southwest Airlines flight from New York to Dallas, flight attendants asked passengers to stay seated due to continual turbulence. Mackey put her seatbelt back on, shared a glance of disappointment about the bumpy ride ahead with the woman seated at the window to her left and settled back in. Mackey, 42, was seated in the aisle seat on the same row as Jennifer Riordan, a mother of two and bank executive from Albuquerque, New Mexico, who was killed when Flight 1380’s left side engine exploded just 20 minutes into their trip.

  • Trump's Claim of ‘Oil All Over the Place’ Isn't True Anymore
    Business
    Bloomberg

    Trump's Claim of ‘Oil All Over the Place’ Isn't True Anymore

    U.S. President Donald Trump’s assertion that OPEC is propping up oil prices amid oversupply and an excess of floating storage has a problem: it’s only half true. While OPEC has been curbing supply in a successful bid to revive oil prices, the group’s success means that there’s no longer a global glut of oil. “Looks like OPEC is at it again,” Trump said in a Twitter post. “With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!” Since January 2017, the Organization of Petroleum Exporting Countries and other nations led by Russia have been slashing supply. OPEC’s compliance with the agreement

  • Cigarette Stocks Have Gotten Burned This Week. Could Things Get Even Worse for Big Tobacco?
    Business
    Fortune

    Cigarette Stocks Have Gotten Burned This Week. Could Things Get Even Worse for Big Tobacco?

    Big tobacco stocks have had one of their worst weeks in years, with Marlboro manufacturer Philip Morris International (PMI) down more than 17% (including its single biggest one-day share price decline in a decade Thursday), Altria down more than 10%, and British American Tobacco (whose subsidiaries include Camel cigarettes maker Reynolds American) down 9%. The bear run kicked off with what, for the industry, was a foreboding sign about the state of business: Philip Morris reported its tobacco shipments had fallen even more than expected.

  • Mueller team skeptical of Giuliani claims probe will end in weeks: Gasparino
    Business
    Fox Business Videos

    Mueller team skeptical of Giuliani claims probe will end in weeks: Gasparino

    FBN's Charlie Gasparino on reports Deputy Attorney General Rod Rosenstein told President Trump he was not a target of the Mueller investigation and Rudy Giuliani's claims the probe will end in a matter of weeks.

  • Business
    Benzinga

    Barron's Picks And Pans: General Electric, General Mills, MLPs And More

    This weekend's Barron's cover story examines the divide between business models in the big tech space. Other featured articles show why MLPs look attractive again and what to expect in the battle over AI chips. Also: the prospects for a branded

  • This Analyst Thinks Apple’s Super-Expensive iPhone X Will Be 'Dead' in Months
    Finance
    Fortune

    This Analyst Thinks Apple’s Super-Expensive iPhone X Will Be 'Dead' in Months

    Apple’s iPhone X continues to perform poorly on store shelves and will reportedly be discontinued this year, according to one analyst. Mirabaud Securities analyst Neil Campling said Apple’s high-end cellphone “is too expensive” during a CNBC interview on Friday.

  • Smallville Actress Arrested for Role in Alleged Sex Cult that Branded and Enslaved Women
    News
    Time

    Smallville Actress Arrested for Role in Alleged Sex Cult that Branded and Enslaved Women

    Allison Mack was accused in an indictment unsealed Friday in federal court in Brooklyn. Mack, 35, starred in The CW network’s “Smallville,” ending in 2015, but has played only minor roles since then. Prosecutors said she helped recruit women for leader Keith Raniere and his cult-like organization called NXIVM.

  • Business
    InvestorPlace

    Southern Company Leads 6 Dividend Stocks Boosting Payouts

    A strong start to earnings season helped the S&P 500 Index inch higher over the last week. Several major businesses added to the positive sentiment with announcements of higher dividends. 6 notable dividend stocks increased their payouts over the last

  • Queen Elizabeth II at 92: These photos document the making of modern history
    World
    Quartz

    Queen Elizabeth II at 92: These photos document the making of modern history

    Britain’s longest-ever ruling monarch, Queen Elizabeth II, turns 92 today (April 21). Living through the terms of 21 UK prime ministers and 16 US presidents, she has reigned for 65 years as one constant in a world that has enormous change. Through photos from the year she was born to present day, here’s a look at how key moments in her life helped shape modern history, as well as what these decades have looked like through the eyes of a monarch. When the queen was a child Princess Elizabeth Alexandra Mary was born in 1926. She was the first child of the Duke and Duchess of York and was not expected to ever become queen. However, in 1936, her father Albert shockingly acceded to the throne and

  • 8 Long-Term Uptrend Stocks to Buy
    Business
    InvestorPlace

    8 Long-Term Uptrend Stocks to Buy

    Netflix, Inc. (NASDAQ:NFLX) has been on a mission, both in reality and in the stock market. As you can see, Netflix stock has been a beast. Over its previous highs and above $330, Netflix stock is basing nicely.

  • Will You Wind Up Returning to Work After Retiring? Chances Are, Yes
    Business
    Motley Fool

    Will You Wind Up Returning to Work After Retiring? Chances Are, Yes

    Countless people look forward to retirement for one key reason: not having to endure the grind of maintaining a full-time career. In a recent survey, among the 17% of adults who returned to work over the past three years after being out of the workforce for at least 12 months, 13% were retirees who resumed their careers because they needed the additional income. The average household nearing retirement has a median savings of just $17,000, according to data from the Economic Policy Institute, and in a more recent study by GOBankingRates, one-third of adults 55 and over were said to have less than $10,000 in a nest egg.

  • Boeing, Brazil's Embraer close to tie-up: report
    Business
    Reuters

    Boeing, Brazil's Embraer close to tie-up: report

    Talks aimed at a tie-up between planemakers Boeing Co and Embraer SA that also involve Brazil's government are at an advanced stage, O Estado de S. Paulo newspaper reported on Friday, citing unnamed sources. The Boeing and Embraer partnership would create a new company in which the U.S. planemaker would have an 80.01 percent stake and the Brazilian firm 19.99 percent, the paper said, adding this was a model supported by the Brazilian government. Boeing, Embraer and Brazil's Defense Ministry did not have an immediate comment on the report.

  • 7 Stocks to Buy for Big May Dividend Hikes
    Finance
    InvestorPlace

    7 Stocks to Buy for Big May Dividend Hikes

    There are three – and only three – ways a company’s stock can pay us: A cash dividend. For example, if a stock pays a 3% current yield and then hikes its payout by 10%, it’s unlikely that its stock price will stagnate for long. For example let’s look at Verizon Communications Inc. (NYSE:VZ), it pays a generous dividend – but doesn’t raise it meaningfully.

  • Pot politics: Schumer joins politicians rethinking marijuana
    News
    Associated Press

    Pot politics: Schumer joins politicians rethinking marijuana

    The top Senate Democrat is using marijuana's informal holiday to announce a change of heart about the drug, another sign of the growing political acceptance of pot. Senate Minority Leader Chuck Schumer of New York said Friday he'll introduce a bill taking marijuana off the federal list of controlled substances — in effect decriminalizing its use. Under the measure, the federal government would still enforce laws against moving pot into states where it's illegal and would still regulate advertising so it isn't aimed at children.