The outlook for the Chicago-based Boeing Co. (NYSE:BA) looks good after the business announced impressive third quarter results on Wednesday. The earnings have gone up to $2.28 billion, which comes to $3.60 for each stock. A year back, it was just $2.47. Core earnings of Boeing, excluding pension and some other costs, have gone up from $2.52 to $3.51 for each share, even though the total revenues have dropped marginally.
The aircraft manufacturer also released their sales forecast for the entire year, which too looked good. In fact, their forecasts and reports were better than what the analysts had predicted, which buoyed the stock market. Boeing went up by 4.69 percent. This was the stock’s best performance since January 29, 2015, when Boeing gained 5.83 percent.
JP Morgan has, however, issued a warning, saying that the stock is not “set up to run away”. So investors should tread cautiously.
Boeing to Sell More Aircrafts
Boeing also revealed that they will be delivering more jetliners than expected this year. About 750 commercial planes will be delivered in 2016, as against the initial expectation of 740. However, this is still below the 762 of last year, but it’s still impressive because of the slacking market conditions. The business announced that they will be able to fetch $500 million more from the sales of these additional aircraft’s. Its year-end revenue projections were thus increased to $95.5 billion. It would be minimum $93.5 billion.
A company spokesperson said that there is a strong demand now for Boeing (NYSE:BA) aircraft’s, and this is likely to make the business more profitable.
Boeing had recently embarked on a huge restructuring program to cut costs, and this has contributed to its better financial situation as well. Analysts working at Jefferies had praised the aerospace business for controlling costs, saying that the outlook “seems bright”. The next year’s revenue might be flatter, though, following the transition to the new 777 twin-aisle plane variant. However, the revenues are not likely to be down by a great deal.
Airbus Profit Goes Down
It’s rival from Europe, the Airbus Group (EPA:AIR), has in the meantime reported a 21 percent drop in their third quarter profit, even though the full-year outlook remains the same. The aim of Airbus was to sell 670 aircraft’s this year, or more, but till September, they have only managed to sell 462. But the business has a backlog of orders.