Boeing beats on earnings despite a big drop in military sales

Boeing, the aerospace giant, reported stronger than expected earnings for its fourth quarter on Wednesday morning.

The company reported earnings of $2.47 per share, topping analysts estimates of $2.32 per share. For revenue, Boeing generated $23.3 billion against analysts’ expectations of $23.1 billion.

The company’s outlook for 2017 came in at $9.10 to $9.30 per share for the full year, analysts had a midpoint expectation of $9.24 per share.

The company says it delivered 926 commercial and defence aircraft over the full year.

Revenue from defence aircraft did fall by 18% for the quarter from the same period in 2015, and income from military sales dropped by 34% from the fourth quarter a year ago. Revenue from commercial deliveries was up by 1% for the quarter.

“We led the industry in commercial aeroplane deliveries for the fifth consecutive year, achieved healthy sales in our defence, space and services segments, and produced record operating cash flow, which fuelled investment in innovation and our people and generated significant returns to shareholders,” said CEO Dennis Muilenburg in a press release announcing earnings.

Following the news, Boeing stock is up slightly. Shares were up 1.43% at $162.85 in pre-market trading as of 7:48 a.m. ET.

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