Aerospace and defense behemoth Boeing outpaced Wall Street expectations despite a 19 percent drop in third-quarter net income featuring dips in profit and revenue in the business unit that’s home to its space-systems operations.
The Chicago-based company, which released its financial results Oct. 25, posted $1.86 billion in companywide net income. That amounted to earnings of $3.06 per share, besting a Bloomberg analyst consensus forecast of $2.67 per share.
Quarterly revenue totaled $24.31 billion.
Boeing’s Defense, Space & Security unit marked a 1 percent slide in operating profit to $559 million, amid a 5 percent decline in quarterly revenue to $5.5 billion.
“Our teams (are) driving execution with a focus on both productivity and growth, which has enabled Boeing to deliver solid third quarter financial results,” Chairman-CEO Dennis Muilenburg said.
Investors weren’t impressed, however, and Boeing shares (NYSE: BA) slid a bit after the quarter financial results were released just prior to market trading. The stock closed off $7.57, or almost 3 percent, at $258.42 amid dour trading in the broader market.
Also Oct. 25, defense contractor Northrop Grumman — which recently agreed to acquire NASA contractor Orbital ATK in a $9.2 billion deal — reported a 7 percent increase in third-quarter net income to $643 million and a 6 percent improvement in revenue to $6.63 billion.
Its per-share earnings of $3.70 well outpaced a Zacks Investment consensus forecast for quarterly earnings of $2.92 per share.
Northrop, based in West Falls Church, Va., marked a 7 percent boost in operating profit to $334 million in its Aerospace Systems operations. Unit revenue climbed 11 percent to $3.08 billion.
Northrop shares (NYSE: NOC) rallied on the premarket earnings news. The stock ended the day up $10.78, or almost 3.7 percent, at $304.81.