Boeing Beats on Strong Deliveries; Shares Rise

CHICAGO (TheStreet) -- Boeing (BA) beat analysts' estimates as revenue rose 30%, largely reflecting increased commercial aircraft deliveries.

Excluding items, the aircraft maker earned $1.11 a share. Analysts surveyed by Thomson Reuters had estimated 94 cents. Revenue rose 30% to $19.4 billion. Analysts had estimated $18.4 billion.

Including items, primarily a reduction in a litigation reserve, Boeing earned $923 million, or $1.22 a share, representing a 58% increase from $586 million in the same period a year earlier. Margin was 8.1%, up 1.4 points from 6.7% a year earlier.

In premarket trading shortly following the earnings release, Boeing shares were up $1.82, or 2.5%, to $75.03.

"Strong core operating performance from our production programs and services businesses continues to drive expanded earnings, revenue and cash flow for Boeing," said CEO Jim McNerney, in a prepared statement. "We also grew our record backlog with more than 300 firm orders for our new 737 MAX, a contract award for 84 new F-15s for Saudi Arabia, and other key wins."

Boeing's backlog is $380 billion including $42 billion of new orders.

At Boeing Commercial Airplanes, revenue rose 54% to $10.9 billion on higher delivery volume and mix. Operating margin was 9.9%. The backlog of more than 4,000 airplanes is valued at a record $308 billion.

At Boeing Defense, Space & Security, revenue rose 8% to $8.2 billion. Operating margin was 9%, up 0.2 points.

The company boosted its full-year guidance to between $4.15 and $4.35 a share, reflecting the reduction in the litigation-related reserve. Analysts are estimating $4.47 a share.

-- Written by Ted Reed in Charlotte, N.C.

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