Boeing drops after announcing weak guidance, drop in free cash flow

Boeing reported lower full-year 2015 earnings amid falling operating margins and lowered its guidance for the next year, sending the shares spiralling lower.

Nevertheless, the company did beat analysts´ profit estimates for the last quarter of 2015.

Core earnings per share for the three months to the end of December 2015 fell by an outsized 31% to $1.60, while revenues slipped 4% to $23.57 in comparison to a year ago.

Analysts had pegged fourth quarter EPS at $1.27.

Free cash flow fell by 42% in the fourth quarter to $2.5bn.

For all of 2015, the aeronautics giant saw revenues rise by 6% to $90.76bn - a record - although a 1.7 percentage point dip in the company´s 'core' operating margins saw operating profits drop 13% to $7.74bn.

Core EPS decreased by 10% in 2015 from $8.60 to $7.72.

Looking out to 2016 management said it expected full-year GAAP EPS of between $8.45 and $8.65 on the back of sales of between $93bn and $95bn.

That was below the $94.1bn and $97.0bn seen by analysts.

Boeing expected adjusted EPS of between $8.15 and $8.35 and cash flow at approximately $10bn.

However, the Chicago-based outfit said it was reaffirming plans to increase production rates over the next several years.

Delivery of between 740 and 745 commercial airplanes were expected in 2016, the company said in a statement.

As of 13:08GMT shares in Boeing were retreating by 6.67% to $119.47.