Boeing shares jump on strong fourth-quarter results, 2017 forecast
By Alwyn Scott
(Reuters) - Boeing Co posted quarterly profit and operating cash that beat analysts' estimates, and promised an even better performance in 2017, thanks to "relentless" cost cutting, rising productivity and U.S. President Donald Trump's pro-business agenda.
Boeing (BA.N: Quote) stock jumped nearly 5 percent to $168.50 on Wednesday after the company said it expects to generate a record $10.75 billion in operating cash this year.
The sum is up from a record $10.5 billion in 2016 and well above the $10.4 billion that analysts had forecast for 2017, according to Thomson Reuters I/B/E/S.
The Chicago-based aerospace and defense company forecast 2017 core earnings of $9.10 to $9.30 a share, which exclude some pension and other costs, up from $7.24 in 2016.
Cost-cutting and productivity gains fueled Boeing's strong performance and forecast, and Chief Executive Officer Dennis Muilenburg said he sees no signs of a slowdown on that front.
"This will be a relentless effort going forward," he said on a conference call, referring to Boeing's efficiency drive.
"While we've made some strong strides over the last couple of years, and you see it reflected in the performance, we have much more ahead of us than what's behind us."