Boeing Co(NYSE: BA) in the first quarter of FY 17 had reported the adjusted revenue fell 7.3 percent to $20.98 billion in the first quarter of FY 17, missing the analysts’ estimates for revenue of $21.30 billion. The revenue fell as commercial aircraft deliveries fell to 169 from 176, and because last year’s revenue figure included delivery of three C-17 military transport aircraft, a plane BA has stopped making. The deliveries of 737s have also dipped as Boeing built 737 MAX 8 jets that it plans to begin delivering this quarter, now that the plane has regulatory certification. While Boeing has delivered two fewer 777s in the first quarter, it delivered two more 787s. As a result, the stock lost over 1.6% this morning (as of 10:00AM EDT on April 26^th, 2017; Source: Google finance).

On the other side, the group has shown the effect of BA’s cost-cutting and factory productivity improvements, which helped to increase the profits as revenue declined. BA is honing its ability to make 787s, and the larger 787-9 model is more profitable than the earlier version. Further, Boeing’s KC-46 aerial refueling tanker has continued to weigh on the first quarter results.

Boeing in the first quarter of FY 17  has reported the adjusted earnings per share of $2.01  from $1.74, beating the analysts’ estimates for the adjusted earnings per share of $1.94. Additionally, BA has promised a steep improvement in cash and savings from the Dreamliner as it refines the plane’s manufacturing process, builds more higher-margin models like the 787-9 and no longer has to compensate customers for late deliveries. The marquee aircraft, with a frame made of spun carbon-fiber, has emerged as a profit maker for BA last year after a decade of losses.

Moreover, Boeing has increased its full-year 2017 forecast for core profit due to the improved tax expectation, which is expected to be in a range of $9.20 to $9.40 a share, up 10 cents. The company did not change the forecast of delivering 760-765 commercial aircraft in 2017 and also left its revenue target unchanged at $90.5 billion to $92.5 billion.

Boeing stock has risen 40.03% in the last one year (source: Google Finance). But the stock has a limited average price target of $186.9, as per consensus from tipranks.com