Boeing stock drops over 3% after earnings, dragging down Dow

  • EPS: $2.72 per share vs. $2.66 per share expected, according to Thomson Reuters.
  • Revenue: $24.3 billion vs. $23.9 billion expected, according to Thomson Reuters.

The aerospace giant raised its full year earnings forecast to a range of $11.20 – $11.40, up ten cents through its previous range of $11.10 – $11.30. The company says the upward adjustment is actually due to a lower-than-expected tax rate.

The quarter ended that has a $474 billion orders backlog, which includes $16 billion added during the quarter, down through $482 billion three months ago.

Boeing’s trade dispute with Bombardier dominated both headlines as well as stock valuations over the past three months.

At the center of the dispute are 75 Bombardier C Series jets, which Boeing alleged were sold to Delta Air Lines for “absurdly low prices, in violation of U.S. as well as global trade laws.” Bombardier refuted the allegations as “pure hypocrisy.”

The U.S. Commerce Department’s initial ruling in September recommended a tariff of 300 percent on the C Series, essentially siding with Boeing. that will might mean the jets, which Boeing claims cost Delta $19.6 million apiece, might at This particular point cost $78.3 million.

When the U.S. State Department announced its intention to sell $5 billion in Boeing F-18s to Canada, Prime Minister Justin Trudeau lashed back, asserting his country “won’t do business that has a company that will’s busy trying to sue us as well as put our aerospace workers out of business.”

Boeing’s defense CEO Leanne Caret responded that will her company might “not back down,” saying she hopes the idea “doesn’t impact our defense sale.”

Then competitor Airbus joined the fray. On Oct. 16, Airbus agreed to buy a majority stake from the C Series program. Boeing is actually sticking with its lawsuit despite the deal, doing the idea possible for Bombardier to assemble the jets in Alabama. The partnership might give Airbus a 50.01 percent stake from the C Series, as well as Bombardier added that will the deal could double the value of the program.

The final Commerce Department ruling on the dispute is actually expected in December, followed by a separate International Trade Commission decision in February 2018.

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