Commercial jets push Boeing profits up 52 percent
Increased production of passenger jets helped push up Boeing's profit by 52 percent in the second quarter, topping Wall Street's expectations.
The Chicago-based company said net income increased to $1.65 billion, or $2.24 per share, from $1.09 billion, or $1.41 per share, in the same quarter a year ago.
Earnings, adjusted for non-recurring costs, came to $2.42 per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $2.02 per share.
Boeing Co. (BA) said Wednesday that revenue climbed 1.1 percent to $22.05 billion from $21.82 billion in the same quarter a year ago. Analysts expected $22.32 billion, according to Zacks.
Revenue at Boeing's Commercial Airplanes division increased 5 percent to $14.3 billion on higher deliveries — 181 new jets, compared to 169 during the same period last year.
Those gains were partially offset by a 5 percent drop in the company's defense, space and security division's revenues to $7.7 billion. The largest problem for that division was fewer deliveries of its C-17 and P-8 military planes, and a pre-tax charge related to its KC-46A tanker program.
"While challenges resolving engineering and systems installation issues on our tanker test aircraft are resulting in higher spending to maintain schedule, the issues are well understood and we remain on path to begin flight testing fully provisioned tankers the first part of next year," CEO Jim McNerney said in a statement.
Boeing also increased its earnings guidance for the year to $6.85 to $7.05 per share, up from a range of $6.10 to $6.30. Its annual revenue guidance remains the same at $87.5 billion to $90.5 billion.
Boeing shares have declined $6.75, or 4.9 percent, to $129.74 since the beginning of the year, while the Standard & Poor's 500 index has climbed 7.3 percent. However, the stock has climbed $21.95, or 20 percent, in the last 12 months.
Shares of the company fell $2.22, or 1.7 percent, to $127.52 in early trading.