Boeing Raises 2015 Outlook as Profit Climbs 25%

EarningsDow Jones Newswires

Boeing (NYSE:BA) raised its 2015 guidance as the world's largest aerospace company reported that its third-quarter earnings rose 25% on continued growth in deliveries of commercial jetliners. Shares rose 2.3% to $142 in recent premarket trading as core earnings and revenue beat expectations. The Chicago company raised its 2015 per-share earnings estimate by 25 cents a to $7.95 to $8.15 and boosted its revenue view by $500 million to $95 billion to $97 billion. Boeing also raised its estimate for commercial airplane deliveries by five planes and now expects deliveries to reach between 755 to 760 planes. The aerospace giant has continued to benefit from strong demand for its fuel-efficient jetliners despite falling oil prices. Both Boeing and rival Airbus Group are pursuing record production increases to quickly deliver leaps in efficiency to cost-conscious airlines. Investors likely will be watching for any signals on the conference call about any shifts in expectations regarding costs and the timeline for Boeing's 787 Dreamliner program to reach profitability. They also are expected to be on the lookout for signs that Boeing's new chief executive, Dennis Muilenburg, plans any shifts from the course set by his predecessor Jim McNerney, now company chairman. Overall, Boeing reported a profit of $1.7 billion, or $2.47 a share, up from $1.36 billion, or $1.86 a share, a year earlier. Per-share core operating earnings, which exclude such items as pension components related to market fluctuations, rose to $2.52 from $2.14. Revenue increased 8.7% to $25.8 billion. Analysts polled by Thomson Reuters expected per-share profit of $2.22 and revenue of $24.74 billion. Operating margin rose to 10% from 8.9%. Write to Tess Stynes at tess.stynes@wsj.com

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