Boeing Co shares take a dive despite posting market-beating third quarter results

Boeing Co (NYSE:BA) shares took a short dive in premarket trade despite the aircraft maker reporting third quarter results that beat Wall Street’s expectations.

On Wednesday, the company said in a statement that net income eased to US$1.85bn, or US$3.06 a share, from US$2.28bn, or US$3.60 a share, a year ago.

READ: Boeing boosted by cost-cutting; lifts full-year guidance

Not including non-recurring items, adjusted earnings per share stood at US$2.72, comfortably above market consensus of US$2.65.

Revenue rose to US$24.31bn, up 2% from the US$23.90bn recorded the year before and again, above Wall Street’s expectations for US$23.99bn.

It attributed this to better-than-expected defense, space and security and global services revenue, which managed to offset an unexpected drop in commercial airplanes sales.

2017 guidance raised

Boeing however raised its guidance range for 2017’s adjusted EPS to US$9.90 to US$10.10 from an earlier projection of US$9.80 to US$10.00.

Its cash flow guidance has also been upped to to about US$12.50bn from US$12.25bn.

The company however stuck to its revenue outlook of US$90.5bn to US$92.5bn.

Market consensus is for a 2017 EPS of US$10.05 and revenue of US$92.2bn.

In premarket trade, Boeing shares dipped 0.75% at US$264.00.

Story by ProactiveInvestors