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Boeing Issues FY 2016 Outlook Below Street Consensus; 2015 Defense Segment Results Mixed

BoeingLogoBoeing (NYSE: BA) — one of 30 companies listed on Executive Mosaic’s GovCon Index — has issued its fiscal year 2016 outlook of earnings between $8.15 and $8.35 per share to fall below the consensus Wall Street expectation of $9.43.

The Chicago-based airplane manufacturer also stated a 2016 revenue outlook of between $93 billion and $95 billion, a range short of the $97.2 billion analysts expected Boeing to issue.

Deliveries of commercial planes will decline in 2016 to between 740 and 745 from the 762 posted last year, Boeing said.

Shares in Boeing were down 6.26 percent in extended hours trade as of 8:49 a.m. Eastern, according to CNBC.

Boeing reported earnings of $7.72 per share for its 2015 fiscal year, which runs on a January-December basis, to show a 10.23-percent decline from 2014 and $1.60 per share in the fourth quarter to register a 30.73-percent fall from the same period last year.

Full-year profit declined 4.96 percent to $5.17 billion and fourth quarter net income fell 30.13 percent from the same period in 2014 to $1.02 billion.

Revenue for 2015 climbed 5.89 percent to $96.11 billion from the $90.76 billion reported in 2014 and fourth quarter sales fell 3.68 percent year-over-year to $23.57 billion.

Wall Street analysts expected the company to report earnings of $7.40 per share for 2015 and $1.26 per share for its fourth quarter on revenue of $96.90 billion for the year and $23.55 billion for the October-December period.

Boeing’s defense, space and security segment revenue held flat at $30.88 billion on a 2014-to-2015 basis and its fourth quarter sales rose 3.82 percent year-over-year to $7.78 billion on higher volume such as a contract for 15 EA-18G Growlers awarded in October and timing of Airborne Surveillance, Command and Control aircraft deliveries.

The defense segment represented approximately 34 percent of the company’s overall 2015 revenue and 33 percent of fourth quarter sales.

Within defense, the military aircraft and global services and support business units showed respective fourth quarter sales increases of 7.02 and 9.13 percent on a year-over-year basis with network and space systems down 10.55 percent.

No units registered sales increases from 2014 to 2015 and the company has issued 2016 revenue guidance for the defense segment at a range of $28.5 billion-to-$29.5 billion.

As of Tuesday’s market close, shares in Boeing declined 11.47 percent from the start of January and were down 4.52 percent over 12 months.

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