By Deepta Bolaky
The Aerospace giant beat estimates and reported a record $101.1bn revenue for the year 2018. It is the first time that the company reports more than $100bn as annual revenue. Below is a summary of the fourth quarter earnings.
Despite some uncertainties around trade tensions that rattled Boeing’s stock in the past few months, the year-end results far-exceeded Wall Street’s expectations. We saw record numbers in commercial aeroplane deliveries, which indicates a strong demand for commercial air travel.
The quarterly results helped drive the equity markets:
Boeing and China have a close relationship, and the CEO of the aerospace giant who has been involved in discussions with both governments sees progress on the trade front:
“China needs airplanes for growth to fuel their economy, while in the U.S., the aerospace industry is a “tremendous” jobs generator.”
The Company provides the following guidance on its outlook for 2019:
Despite the current trade tensions, it is good to see a company which is closely linked with China beating estimates and raise EPS and revenue forecasts.
Another surprise on the upside was Facebook. Despite privacy-related scandals, Facebook beats quarterly revenue and profit estimates. The growth was supported by Instagram business and the rise in advertising spending by companies.
Fourth Quarter and Full Year 2018 Operational and Other Financial Highlights:
The company’s privacy and data practices came under heavy scrutiny last year, yet this did not deter companies to ramp up advertising ads with Facebook. The release of the earnings report was overshadowed by the news that Facebook paid teens in order to monitor their phones via an unsettling research app which is only allowed to be used by Facebook or its employees.
Facebook’s share price was rallying ahead of its earnings and gained 17.32% so far post-report in the extended hours.
Despite companies like Caterpillar, Tesla and Microsoft missing estimates or downgrading forecasts, Apple, Boeing and Facebook are among those that surprised on the upside. More dovishness from the Fed is also providing support to the equity markets.