Boeing Reports Record 2017 Deliveries, Backlog

In January 2017, Boeing Co. (NYSE: BA) forecast that it would deliver 760 to 765 new commercial jetliners in the year. Tuesday morning the company announced that it had delivered 763 new jets last year, one more than the previous all-time high of 762 deliveries in 2015.

For the fourth quarter, Boeing delivered 209 new airplanes, including 148 single-aisle 737s, six 747s, three 767s, 16 777s and 38 787 Dreamliners. For the full year, Boeing delivered 529 737s and 136 787s, along with 14 747s, 10 767s and 74 777s.

The company also reported net new orders for 2017 totaled 912. That pencils out to a book-to-bill ratio for the year of about 1.2 and a record backlog of 5,864 commercial planes.

By family, net new orders in 2017 were:

• 737: 45 for current generation and 700 for MAX
• 777: 40 for current generation and 20 for 777X
• 787: 94 total

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Boeing was the Dow’s best-performing stock of 2017, with a share price increase of 89.4%. Investors who stuck with Boeing for the full 2017 calendar year received a total return of nearly 91%.

Archrival Airbus reports 2017 orders and deliveries next week and is expected to post deliveries of around 700 commercial jets, below its original projections of around 720. The shortfall is mostly down to problems with the Pratt & Whitney geared turbofan engines.

When Boeing reports earnings later this month analysts are looking for full-year earnings per share of $10.21 and revenues of $92.2 billion. The company has projected operating cash flow of $12.0 billion to $12.5 billion, and that appears to be in the bag. Operating cash flow for the trailing 12 months is $13.27 billion.

Investors continue to bet on Boeing. The company’s forward price-earnings (P/E) ratio of 28.12 remains quite optimistic, although it is lower than the company’s trailing 12-month P/E of 29.04.

Boeing’s stock traded up about 1.8% at $315.69 shortly before noon Tuesday, a new 52-week high. The stock’s 52-week low is $156.67, and the consensus 12-month price target is $303.17.

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