Boeing's revenues exceed $100bn for the first time; shares jump

Shares in Boeing surged in pre-market trading after the US aerospace group beat Wall Street forecasts.

The Chicago-based group posted revenues of $28.3bn for the fourth quarter, a 14% hike year-on-year, and saw operating profits surge 40% to $4.2bn. Analysts had been looking for revenues of around $26.8bn.

Full-year revenues came in at $101.1bn, an 8% jump and the first time annual sales have surpassed $100bn. Boeing attributed the improvement to strong growth across all units alongside higher commercial deliveries. Underlying earnings per share were ahead 30% at $16.01.

Shares in the aircraft maker jumped 6% ahead of the bell, helped further by an upbeat forecast for the current year. It predicted earnings would come in between $19.90 and $20.10 a share. Analysts had been expecting around $18.31 a share.

President and chief executive Dennis Muilenburg said: “Our financial performance provided a firm platform to further invest in new growth businesses, innovation and future franchise programmes.

“Our ‘One Boeing’ focus, clear strategies for growth and leading positions in large and growing markets give us confidence for continued strong performance, revenue expansion and solid execution across all three businesses, which is reflected in our 2019 guidance.”

Boeing’s defence unit saw revenues jump 16% in the fourth quarter, to $6.1bn, on strong sales of F/A-18 fighter jets, satellites and weapons. Boeing is one of the world’s largest defence companies.

Its commercial airplanes arm reported a 12% improvement in fourth-quarter revenues, to $17.3bn, and delivered 238 planes, a 14% increase on the same quarter a year ago.