Shares of Dow component Boeing rose Wednesday after the company reported strong third-quarter earnings on the back of a robust defense business and more efficient commercial aircraft production. The company also raised its 2018 earnings forecast, in what looks to be a record year for revenue.
The aerospace giant reported adjusted earnings of $3.58 a share, topping expectations of 11 cents by analysts surveyed by Refinitiv. Third-quarter revenue came in a $25.15 billion, which was over $1 billion more than analysts forecast.
The stock ended the day up 1.3 percent at $354.65 a share, after rising as high as $364.60 a share in early trading, as Boeing followed the rest of the Dow Jones Industrial Average lower.
Boeing raised its full year 2018 earnings forecast to a range of $14.90 to $15.10, up from its previous guidance of $14.30 to $14.50. Boeing may see its full year revenue top $100 billion for the first time, as well.
CEO Dennis Muilenberg noted that Boeing landed billions in military contracts this summer, which he termed "important new defense business." The Navy selected Boeing to develop the MQ-25 unmanned aircraft system and the Air Force awarded Boeing $9.2 billion to build the T-X trainer aircraft and $2.4 billion for the MH-139.
The delayed KC-46 tanker aircraft cost Boeing $176 million in additional charges in the third quarter — $112 million to its commercial airplane business and $64 million to its defense business. The KC-46 program has now cost Boeing $3.6 billion in total charges for the Air Force contract.