Boeing Soars On Top line Gains
In contrast to Capterpillar’s (NYSE:CAT) dismal report, Boeing (NYSE:BA) , reported what was a stellar third quarter report on Wednesday. Share of Boeing were sent soaring to the upside as the company’s profit rocketed higher by 12 percent per share. Net income for the company rose to $1.51 a share from $1.35 per share in the third quarter of last year.
These strong gains were seen as a result of increasing revenue. On the top line the company watched its revenue increase by 11 percent to $22.13 billion. The gains in revenue came largely from a 14 percent surge in aircraft deliveries. Boeing’s core earnings, which exclude some pension and other costs, jumped 16 percent to $1.80 a share from $1.55. As a result of a globally improving economy Boeing raised its full-year core earnings forecast to between $6.50 and $6.65 a share from a previous outlook of $6.20 to $6.40.
In the first nine months of the year, Boeing delivered 476 planes, including 170 in the latest quarter. This would mean the company needs to deliver 169 in the fourth quarter to hit the top end of its target. Boeing said it plans to increase production of the 787 Dreamliner to 12 aircraft per month in 2016, up from a target of 10 per month by the end of 2013. Moreover, the company announced it plans to further ramp up the production rate of its newest, high-tech plane to 14 per month before the end of the decade. Rising production will allow Boeing to book more revenue and increases its cash flow.
At the time of this writing shares of the company traded to the upside by 6 percent to $130 per share. Shares of Boeing are higher by more than 62 percent so far this year. Stellar gains considering the company is a member of the Dow Jones Industrial Average.
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