Boeing Shares Rise on Earnings Beat and Guidance Boost

CHICAGO -- (TheStreet) -- Shares of Dow component Boeing (BA) were rising in premarket trading Wednesday after the company beat estimates and increased guidance.

Shortly after noon, shares were trading at$73.56, up 74 cents, after trading as high as $75 during the morning.

The aircraft maker and defense company said it earned $1 billion, or $1.35 a share. Analysts surveyed by Thomson Reuters had estimated $1.13. Revenue rose 13% to $20 billion, in line with estimates.

"Strong core operating performance drove increased earnings in both our major businesses, along with higher overall revenues, improved cash flow, and solid earnings per share even as pension headwinds rose," said CEO Jim McNerney, in a prepared statement. "Our defense, space & security business maintained double-digit margins in a challenging environment while commercial airplanes continued to build momentum with 787 deliveries and 737 MAX orders. "

However, the company said increased earnings in both its commercial aircraft and defense businesses were more than offset by higher pension expense of $194 million, or 18 cents a share. Partially as a result, earnings fell 6% to $1.03 billion from $1.1 billion in the same period a year earlier. Also, per share earnings fell 8% to $1.35 from $1.46, and operating margin declined to 7.8% from 9.7%.

Looking ahead, Boeing raised full-year earnings guidance to between $4.80 and $4.95 a share. Analysts were estimating $4.73. Boeing raised full-year revenue guidance to between $80.5 billion and $82 billion, due to higher revenue from defense, space & security. Analysts were estimating $80.65 billion. Boeing raised its 2012 operating cash flow outlook to more than $5.5 billion.

" Underpinned by our solid performance to date and positive outlook, we are raising our year-end guidance for revenue, earnings and operating cash flow," McNerney said.

In the commercial airplane segment, revenue rose 28% to $12.2 billion. The operating margin fell 1.9 points to 9.5%, reflecting "the dilutive impact of 787 and 747-8 deliveries and higher period costs partially offset by lower R&D," the company said. At Boeing Defense, Space & Security, revenue declined 4% to $3.79 billion. Operating margin rose 0.5 points to 10.5%.

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

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