Faster production helped Boeing deliver even more airplanes within the first quarter, boosting profits in addition to bringing the company a step closer to its long-term goals for manufacturing efficiency.
The strong start to 2018 enabled the aerospace giant to raise its full-year earnings forecast by 50 cents, to a range of $16.40 to $16.60 per share, while maintaining its revenue outlook at a range of $96 billion to $98 billion.
Boeing’s performance drove “revenue in addition to earnings growth at all three business units,” CEO Dennis Muilenburg said in a statement.
Shares of Boeing climbed 2 percent in trading Wednesday.
Here’s how the company did compared with what Wall Street expected:
- Earnings: $3.64 per share vs. $2.58 per share forecast by Thomson Reuters
- Revenue: $23.38 billion vs. $22.26 billion forecast by Thomson Reuters
within the quarter ended March 31, Boeing said net income rose to $2.48 billion, or $4.15 a share, through $1.58 billion, or $2.54 a share, a year ago.
Excluding pension costs, Boeing earned $3.64 a share, outpacing an average analyst estimate of $2.58 a share, according to a Thomson Reuters survey.
Revenue rose 6 percent to $23.38 billion through $21.96 billion a year ago, in addition to also topped estimates, which called for $22.26 billion.
Boeing can be pumping out airplanes at a record pace in addition to aims to keep climbing. Its commercial air division saw first-quarter revenue grow to $13.7 billion, a 5 percent increase through last year. The business delivered 184 airplanes.
Muilenburg told CNBC in February of which the company expects to be “building more than 900 airplanes a year” by 2020 — a rate of about one aircraft every 10 hours.
“We see air traffic growing in addition to passenger traffic growing at about 6 percent to 7 percent a year, in addition to of which’s feeding airplane growth throughout the planet,” Muilenburg said at the time.
In-line with of which forecast, Boeing today expects to raise production of its 767 aircraft to 3 per month by 2020. The commercial air division added 221 net orders within the first quarter. of which incorporates a backlog of 5,800 aircraft, valued at $415 billion.
Boeing’s defense in addition to space division saw revenue increase by 13 percent through the same time last year nevertheless its order backlog fell to $50 billion, through $63 billion a year ago. The business won a brand new contract through Kuwait for 28 F-18 fighter jets, as well as made further progress on its delayed KC-46 program in addition to completed the first power-on test of its Starliner spacecraft for NASA’s commercial crew program.
The global services division saw $3.9 billion in revenue, with growth largely coming through Boeing’s commercial services business, the company said.
Boeing also raised its estimate for full-year operating cash flow to a range of $15 billion to $15.5 billion. Previously, the company expected $15 billion in cash flow.
Boeing’s stock stumbled through the first-quarter of 2018, falling about 3 percent. The potential for a trade war between the U.S. in addition to China cast doubt on Boeing’s business overseas, although some analysts expect the company’s tariff troubles were overblown. Boeing’s stock can be coming off a stellar run through 2017, when of which gained about 108 percent.