“We view BA’s 2014 EPS/cash-flow guidance to be initially conservative given the year is just commencing and coupled with BA’s typical cadence of increasing mileposts as the year progresses,” says Sterne Agee's Peter Arment, capturing the flavor of sell-side reaction.
Boeing's 6%-plus decline is responsible for nearly half of the Dow's 170 point drop.
More on Boeing's (BA) Q2: Higher 787 and 737 deliveries drive a 9% Y/Y increase in revenue. Backlog grows to a record $410B on the strength of $40B in new orders. Operating cash flow ex-pension contributions doubles and then some to $3.5B. Commercial airplanes: Revenue +15%, operating margin +50 basis points, deliveries +13%. Defense: Revenue flat, operating margin +40 basis points. FY13 guidance: $6.20-6.40 on revenue of $83-86B. Shares +1.68% premarket. (PR)
More on Boeing (BA) Q1 earnings: Core operating earnings of $1.9B, up 14% Y/Y. Core operating margin of 9.9%, up 80 bps from a year ago. Backlog of $392B, up $2B from end of 2012. Net orders of $20B during Q1. FY2013 outlook of $82B-$85B in revenue and core EPS of $6.10-$6.30 is reaffirmed. Conference call 10:30 ET (presentation slides). Shares +3.3% premarket. (PR)