Boeing earnings top estimates, raises guidance

Terri Cullen
A Boeing 787-8 Air China jet.
ChinaFotoPress | Getty Images

Boeing reported quarterly earnings and revenue that beat analysts' expectations on Wednesday, and the aerospace giant raised its full-year guidance.

After the earnings announcement, the company's shares rose in premarket trading. (Get the latest quote here.)

The company posted third-quarter earnings of $2.14 a share, up from $1.80 a share in the year-earlier period.

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Revenue increased to $23.8 billion from $22.13 billion a year ago.

Analysts had expected the company to report earnings of $1.97 a share on nearly $23.02 billion in revenue, according to a consensus estimate from Thomson Reuters.

Boeing said it now sees 2014 earnings per share, excluding items, of $8.10 to $8.30. The company previously had forecast a range of $7.90 to $8.10 a share.

Boeing's Q3 beats Street, raises guidance
Boeing's Q3 beats Street, raises guidance

The Chicago-based company recently announced it will sell 50 planes to airline Garuda Indonesia for $4.9 billion. Both Boeing and its French rival Airbus have long backlogs of orders for commercial jets, as airlines seek newer, more efficient planes to offset jet fuel costs.

Commercial aircraft deliveries rose 9 percent to 186, but the operating margin in the division narrowed to 11.2 percent from 11.6 percent, reflecting the effect of deliveries of lower-margin 787 and 747 aircraft in the quarter, Boeing said.

The margin decline and cash losses on the 787 that exceeded his forecast "could dampen the stock reaction," Joseph Nadol, analyst at JPMorgan, said in a note.

Boeing stock rose 1 percent to $128.44 in premarket trading following the results.

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For 2014, the company said it expects core earnings between $8.10 and $8.30 per share, up from its earlier forecast of $7.90 to $8.10.

Sales fell 2 percent to $7.9 billion at Boeing's defense, space and security business, reflecting continued pressure from cuts in government spending. But Boeing was able to boost profit 27 percent and operating margins by 2.4 percentage points in the unit by cutting costs.

Investors have been watching Boeing's ability to return cash to shareholders through dividends and share buybacks and the company spent $1 billion on share repurchases in the quarter, and another $500 million on dividends.

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Boeing's full-year revenue forecast remained unchanged at $87.5 to $90.5 billion. Boeing trimmed its sales forecast for military aircraft for the full year to $13.7 billion from $14.2 billion, but raised its outlook for its global services and support business to $9.1 billion from $8.6 billion.

Boeing left unchanged its full-year forecast for commercial aircraft deliveries and sales, expecting between 715 to 725, and revenue of $57.5 billion to $59.5 billion.

Reuters contributed to this report.