Boeing's Stock Surges After Profit Rises Well Above Expectations

Shares of Boeing Co. surged 3.4% in premarket trade Wednesday, after the aerospace and defense contractor beat third-quarter profit and sales expectations, and raised its outlook. Earnings rose to $2.3 billion, or $3.60 a share, from $1.7 billion, or $2.47 a share, in the same period a year ago, boosted by favorable tax items. Excluding non-recurring items, adjusted earnings per share came to $3.51, well above the FactSet consensus of $2.61. Revenue fell 8% to $23.9 billion from $25.8 billion, but beat the FactSet consensus of $23.6 billion. The company raised its 2016 adjusted EPS outlook to $7.10 to $7.30 from $6.40 to $6.60, and lifted its revenue outlook to $93.5 billion to $95.5 billion from $93.0 billion to $95.0 billion. The stock has lost 3.9% eyar to date through Tuesday, while the Dow Jones Industrial Average has gained 4.3%.