Following its usual pattern, Boeing (NYSE:BA) beat Wall Street estimates on both revenue and earnings. The Chicago-based aircraft giant also reversed an expected revenue decline and raised both earnings and revenue guidance for the remainder of 2018. This news sent Boeing stock higher in early morning trading.

The quarterly report reaffirms Boeing’s place as one of the more stable companies in American business. However, the report also indicates that its daunting pension liability remains. Moreover, concerns about an ongoing trade war have hampered the growth of the stock this year. Still, with the profit growth rate and the backlog, Boeing remains a stock to hold and possibly buy on any significant pullback.

Boeing Stock Beat on Both Earnings and Revenue

Boeing earnings-per-share for the third quarter came in at $3.58, beating Wall Street expectations by 11 cents per share. This represents an increase from the same quarter last year where the airframe manufacturer and aircraft services company earned an EPS of $2.72.

Revenue also beat expectations, coming in at $25.15 billion. This beat estimates by $1.26 billion and represents a 3.8% increase from the same quarter last year. In the third quarter of 2017, Boeing reported $24.31 billion in revenue.

The company also raised both revenue and earnings guidance. The company now expects to bring in between $98 billion and $100 billion in revenue for the year. Boeing had expected between $97 and $99 billion. They also predict annual earnings somewhere between $14.90 and $15.10 per share. The firm had previously anticipated between $14.30 and $14.50 in non-GAAP EPS.

Other welcome news came from the report as well. The backlog, which has become a long-term driver for Boeing stock, also remained large. This backlog now consists of more than 5,800 aircraft valued at $491 billion. Many have pointed out that archrival Airbus (OTCMKTS:EADSY) has earned more new business. Still, with few competitors in commercial aircraft, the backlog holds Boeing in good stead.

This earnings and revenue beat sent Boeing stock higher. Boeing rose by over 4% after the opening bell. It also comes as welcome news to long-term holders of Boeing stock. They saw impressive stock price growth in the previous two years. However, the stock has remained range-bound this year.

Concerns With Boeing Stock Remain

One concern stems from its massive pension liability. With pension and retiree healthcare leaving over $20 billion in liabilities, only General Electric (NYSE:GE) faces a more difficult challenge in this area. The accrued net pension liability came down by $544 million last year. However, that still stands at about $15.93 billion. The company also reduced accrued retiree healthcare liabilities by $151 million. But those still stand at $5.39 billion.

In short, this reports confirms what I suspected before earnings. The exceeded expectations, revenue and profit growth, and the massive order backlog ensure the prosperity of BA stock for years to come. The stock remains a long-term buy. The question becomes when to buy?

At these levels, Boeing stock stands as a hold. With the increase in the stock price, higher profits failed to reduce the price-to-earnings ratio. The multiple stands at over 24, ahead of the stock’s five-year average P/E of about 21.4.

Still, profit growth remains impressive. The company will not sustain this year’s 42.2% profit growth rate over the long term. However, analysts predict average annual profit growth of 21% per year over the next five years. Given this level of growth, I see any significant pullback in Boeing stock as an opportunity to buy.

Final Thoughts on Boeing Stock

The revenue and earnings beat leaves Boeing stock a hold at current levels. While hardly surprising, Boeing’s earnings and revenue numbers as well as its growth and ongoing order backlog position the stock for continued long-term growth.

The question remains when to buy. Boeing stock trades slightly ahead of its long-term average P/E ratio. However, pension liabilities will weigh on the stock for years to come. Given its valuation, I believe BA stock remains a buy on any significant pullback. For now, investors should simply watch and wait.

As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting.