Yahoo Finance Boeing reports higher earnings, lifts forecast
Boeing reported higher third-quarter earnings and boosted its full-year forecast Wednesday as it projected more commercial plane deliveries in 2016 than previously expected.
Operating profit fell in Boeing's commercial and military divisions, yet results bested analyst expectations for earnings-per-share and revenue. Shares were up 4.0 percent in midday trade to $144.60.
Analysts praised the aerospace giant for showing progress in containing costs in its commercial airplane-building program and for turning in stronger-than-expected results in its defense business.
Net income was $2.3 billion, up 33.7 percent from the year-ago period and boosted by one-time tax benefits.
Revenues were down 7.5 percent to $23.9 billion.
"Solid operating performance across our commercial and defense and space businesses in the third quarter again generated strong cash flow for Boeing, which continues to fuel investments in our future and enable us to deliver compelling returns to our shareholders," said Boeing chief executive Dennis Muilenburg.
Operating results have been dented in 2016 by somewhat lower commercial deliveries compared with 2015. Through the end of the third quarter, Boeing delivered 563 planes, down three percent from the year-ago period. Revenues in the aerospace industry are closely tied to commercial airplane deliveries.
On Wednesday, Boeing lifted its projection for full-year commercial deliveries to between 745 and 750 commercial planes in 2016, up from the prior range of 740-745, but below the 2015 total of 762 planes.
Boeing executives said overall demand for commercial aircraft remains strong and that company efforts to boost profitability were on track as it moves into a quicker phase of production for the 787 Dreamliner planes.
A note from Jefferies praised the company for limiting costs on the 787 and said the outlook for the program "seems bright."
Jefferies also described Boeing's performance in defense as better than expected, with higher profits for military aircraft.
Chief financial officer Greg Smith said on a conference call that Boeing expects revenues to be flat to "slightly down" in 2017 due to a transition in its widebody 777 line to a newer-generation model. Boeing also has a flat-to-slightly lower outlook for revenues in its defense business due to lower vehicle deliveries.
