Shares of Boeing (NYSE: BA) declined after revenue in its commercial airline division fell short of Wall Street estimates. Its earnings per share forecast for 2018 also disappointed.
The aerospace giant came out with a release Wednesday morning saying its second-quarter earnings beat Wall Street's expected results for both the top and bottom lines. But Boeing stuck to its full-year 2018 earnings per share guidance of $14.30 to $14.50, below the $14.56 consensus analyst estimate.
The company's commercial airplane division reported revenue of $14.48 billion, coming in about $350 million lower than estimates. Boeing's core business also took a $307 million hit to its second-quarter operating margin, as the company said it recorded a charge "related to cost growth on the KC-46 Tanker" as Boeing pushes to certify the aircraft for the Air Force by October.
The U.S. aircraft maker added even more planes to its already immense backlog of orders, with the company reporting it now has orders for nearly 5,900 airplanes, worth nearly half a trillion dollars.
Earnings were $3.33 per share vs. $3.26 per share forecast, while revenue: was $24.3 billion vs. $24.04 billion forecast.
The company's stock is up over 21% this year as of Tuesday’s close of $358.27 per share, continuing a climb of nearly 70% over the last year.
Said CEO Dennis Muilenburg, "We are seeing the results of our One Boeing approach as our teams work together across the Boeing enterprise to deliver value to our customers and grow our business. In the quarter, we generated improved revenue and earnings, delivered strong cash and captured $27 billion in new orders."
Shares dwindled $8.67, or 2.4%, to $349.60
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