Boeing reports third quarter revenue of $23.78 billion
Boeing earned $1.36 billion in its third quarter, an 18 percent increase from the same period last year, driven by strong demand for commercial jets and a faster rate of production.
The aerospace and defense company reported profit of $1.86 per share, and $2.14 per share when adjusted for non-recurring costs. This is far ahead of what most analysts had forecast.
Revenue for the period was $23.78 billion, higher than what most analysts expected (of $23.04 billion), according to Zacks.
This is all driven by the fact that there has been a record number of jets being bought by airlines – partly because of attractive financing options and an increasing number of global fliers.
In the recent quarter, Boeing recorded 501 plane orders, increasing its backlog to more than 5,500 airplanes – valued at approximately $430 billion. Boeing is also increasing its pace of production in an effort to improve cash flow. It delivered 186 commercial jets in the quarter, compared to 170 the year before.
In total 528 new planes have rolled off Boeing assembly lines this year alone, which is significantly higher than the 476 rolled off in the first nine months of last year. The increase is mainly thanks to its 737 aircraft and the 787 Dreamliner.
Despite commercial jet revenue increasing, revenue from its military arm fell by 1.7 percent, down to $7.91 billion. Less government satellite launches also affected its space systems revenue.
Boeing increased its outlook for full year core earnings per share by 20 cents to between $8.10 to $8.30 per share. It forecasts revenue to be between $87.5 billion and $90.5 billion.