Boeing Co. (BA) announced strong financial results for the first quarter and also lifted its outlook for cash flow and profit amid increasing demand for commercial aircrafts. The company’s shares jumped more than 4 percent on Wednesday following better-than-expected results.
The world’s largest plane maker reported earnings of $3.64 a share for the quarter ended March 31, well above $2.17 a share in the comparable quarter last year. Analysts surveyed by Thomson Reuters were looking for earnings of $2.58 a share.
Revenue for the quarter came in at $23.38 billion, up 6.5 percent from the same period last year and also above consensus forecast of $22.26 billion.
Looking forward, Boeing raised its earnings outlook for the full year. It now expects profit per share in a range of $14.30 to 14.50, as compared to its previous forecast in between $13.80 and $14.00.
It also lifted its operating cash flow guidance to a range of $15.0 billion-$15.5 billion for the full year.
Boeing has been pressurizing suppliers to slash aircraft parts prices, as it looks to stay competitive amid promising demand from airlines for jets at low cost. It has also launched automation in its production units, trimmed development costs as well as jobs to significantly boost its profit and cash flow.
The Chicago, Illinois-based company said that its aircraft deliveries jumped 9 percent to 184 in the first quarter, thanks to strong demand from airlines amid increasing passenger air travel. Worldwide freight traffic rose on average by 7.7 percent during the first two months of 2018.
Boeing also plans to lift production on its 767 aircraft program starting in 2020 from 2.5 percent to 3 percent, indicating its strength in the worldwide cargo market.
