Boeing Co (NYSE: BA) bounced back from an unfavorable trade ruling on Wednesday morning when the company reported a better-than-expected fourth quarter, sending shared higher by more than 5 percent in pre-market trading. Boeing finished off an incredibly successful 2017 in which it was the top-performing stock in the Dow Jones industrial average, gaining 89 percent on the year.
Boeing reported fourth-quarter earnings per share of $3.06 on revenue of $25.37 billion. Both numbers topped consensus estimates of $2.89 and $24.69 billion, respectively.
“Across Boeing our teams delivered a record year of financial and operational performance as they focused on disciplined execution of production and development programs, growing services, and delivering value to customers,” CEO Dennis Muilenburg says in a statement.
[See: 10 Investing Themes to Remember for 2018.]
Boeing’s huge 2017 included a record 763 plane deliveries and 912 jet orders. The company entered 2018 with a record backlog of 5,863 commercial aircraft orders.
The strong quarter was good news for Boeing investors, who were caught off guard last week when the U.S. International Trade Commission ruled against Boeing in a trade dispute with Canada’s Bombardier. The commission ruled that Bombardier would not have to pay the nearly 300 percent tariffs recommended by the U.S. Commerce Department after Boeing complained that Bombardier sold Delta Air Lines ( DAL) 75 C Series jets at prices below production costs.
Looking ahead to 2018, Boeing expects EPS of between $15.90 and $16.10 on revenue of between $96.0 and $98.0 billion. It also anticipates between 810 and 815 commercial plane deliveries.
Boeing also announced this week that it is prioritizing innovation by investing in battery company Cuberg. Boeing has previously invested in electric plane company Zunum Aero as part of its initiative to study and develop electric flight technology.
Boeing’s business is certainly firing on all cylinders at the moment, but its share price has more than doubled in the past year. According to CFRA analyst Jim Corridore, Boeing stock may have reached peak altitude for now.
“Boeing is executing well, shipped a record number of planes in ’17, and should exceed that in ’18,” Corridore says. “However, we do not think the upside implied by our 12-month target price is likely to outpace the S&P 500 over the next year.”
[See: 7 of the Best Stocks to Buy for 2018.]
CFRA has a “hold” rating and $345 price target for BA stock.
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Boeing Co (BA) Stock Soars On Record Plane Deliveries originally appeared on usnews.com
