Boeing increases profit and sales forecasts; shares jump

(Reuters) – Boeing (PROHIBITShares rallied on Wednesday after the world's largest planner announced stronger-than-expected quarterly earnings and cash flow, helped by growing demand from airlines and strong defense sales and services, and an increase in its sales and profit forecasts for 2018.

Demand from commercial airlines has increased revenues, pushing up shares by about a third in the last 12 months. Boeing shares rose 2.3% to $ 358.12 in the morning, limiting losses on Wall Street.

"The quarterly results are many, but we think investors will return to the norm and focus on Boeing's cash flow," said Robert Stallard, an analyst at Vertical Research Partners. "It was a stronger cash than expected, with a positive adjustment of $ 200 million compared to the forecast for 2018."

Boeing said the increase in cash flow was primarily driven by the timing of revenues and expenses as well as higher expected commercial aircraft production rates.

Chinese airlines will purchase 7,690 new aircraft worth $ 1,200 billion over the next two decades, in order to keep pace with the surge in consumer and business demand, announced Boeing last month after announcing a previous forecast.

Boeing, headquartered in Chicago, has raised its earnings guidance for the current year from $ 14.30 to $ 14.50 per share, from $ 14.8 to $ 15.10 a year. a turnover ranging from $ 98 billion to $ 100 billion, up $ 1 billion. He cited defense volume and service growth for the highest predictions.

Core earnings, which exclude certain pension and other costs, were 11 cents above analysts' average forecast at $ 3.58 per share for the quarter ended September 30th.

ON THE TRACK FOR THE RECORD YEAR

Boeing delivered 568 aircraft in the first nine months of 2018 as it focuses on overcoming the factory collisions of its 737-strong, bestselling body, up 554 at the end of September. 'last year. aircraft sales.

This maintains the manufacturer, which aims to deliver between 810 and 815 aircraft in 2018, ahead of its European competitor Airbus SE (AIR.PA), which delivered 503 aircraft until September of this year. The Airbus share rose 2.7%.

Investors ignored a range of charges related to recent defense contracts, which Boeing said were accounted for in the hopes that program costs would exceed revenues.

Boeing recorded additional charges of $ 176 million in the quarter on its delayed KC-46 air tanker, bringing the total cost of the program to more than $ 3 billion.

The MQ25 refueling drone and the T-X training jet programs also cost $ 691 million a few months after winning the latter contract, in cooperation with Sweden's Saab AB (SAABb.ST), although the expense was partially offset by a tax benefit of $ 412 million.