- Thomson Reuters
- Boeing reported fourth-quarter and full-year earnings on Wednesday.
- The aerospace giant reported record revenue that crossed the $100 billion threshold for the first time.
- Boeing also reported a record $15.3 billion in operating cash flow.
- Watch Boeing trade live here.
Boeing reported a record $101.1 billion in sales for 2018, sending shares soaring by nearly 7% on Wednesday.
Until Wednesday, the aerospace giant had never before reported more than $100 billion in revenue, according to a Bloomberg analysis, underscoring how well the company fared last year even in the face of uncertainty caused by the US-China trade war.
Wednesday’s surge boosted the broader market, with the Dow Jones Industrial Average climbing more than 300 points.
“BA posted a knock-out quarter with clean beats down the line,” Credit Suisse analyst Robert Spingarn wrote. “BCA margins were exceptional at 15.6% in the quarter, on favorable mix and production efficiencies, and overall Core operating margin improved to 13.6%, its best result in memory.”
Spingarn and his team said Boeing’s 2019 guidance came in well above consensus on several fronts: sales, margins, and earnings – though free cash flow was mostly in line with expectations.
Read more: Boeing targets 900 plane deliveries in 2019
Boeing’s revenue rose 8% versus a year ago – sales in 2017 came in just over $94 billion. The company pointed specifically to record commercial deliveries, higher defense spending, and services volume ushering in its positive results.
As for the fourth-quarter, Boeing posted sales of $28.3 billion, topping the $26.9 billion estimated by analysts surveyed by Bloomberg.
Notably, Boeing made no mention of tariffs, trade war, or China in its earnings report or investor presentation. The results stand in contrast with what some analysts feared for the company last year, when trade tensions between the US and China rattled shares. China is a major market for Boeing.
Shares have risen 21% so far this year, trading around $389.91 on Wednesday.
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- Markets Insider