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Boeing rises 2.9% on strong earnings, upbeat outlook

Published 21/10/2015, 10:47 pm
Boeing rises 2.9% as company reports better-than-expected earnings, raises outlook
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Investing.com - Global aircraft manufacturer Boeing (N:BA) reported better-than-expected third quarter earnings ahead of Wednesday’s opening bell and boosted its full-year outlook, sending its shares higher in pre-market trade.

Boeing said core earnings per share came in at $2.52 in the three months ended September 30, blowing past expectations for core earnings per share of $2.21, reflecting strong performance across the company. GAAP earnings per share was $2.47.

The company’s third quarter revenue totaled $25.85 billion, above forecasts for revenue of $24.7 billion and 9% higher than sales recorded in the same period a year earlier, on record commercial deliveries.

"By continuing to profitably deliver on our large and diverse backlog, we are driving strong growth in revenue, earnings and cash flow," said Boeing President and Chief Executive Officer Dennis Muilenburg.

"Solid operating performance across our commercial and defense businesses during the quarter also supported our continued investment in innovation and our people, and our commitment to return cash to shareholders," he added.

Core earnings per share guidance for 2015 increased to between $7.95 and $8.15, from $7.70 and $7.90 on continued strong operating performance. GAAP earnings per share guidance for 2015 increased to between $7.65 and $7.85, from $7.60 and $7.80.

Revenue guidance increased $0.5 billion to between $95.0 billion and $97.0 billion on higher commercial airplane deliveries.

Following the release of the report, shares in Boeing rallied $4.03, or 2.9%, in pre-market trade to $143.00 from Tuesday's closing price of $138.97.

Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures rose 89 points, or 0.52%, the S&P 500 futures tacked on 10 points, or 0.49%, while the Nasdaq 100 futures advanced 21 points, or 0.47%.

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