Shares of Boeing jumped by 3.79% during the pre-market trading after the American aircraft manufacturing company raised its outlook for its full-year earnings.
Second Quarter Earnings Report
Boeing shares were still up despite reporting a decline of 8% in its second quarter earnings report at $22.7 billion slightly beating most analyst estimates of $23 billion in revenue.
The company’s deliveries for the quarter that ended in June was 8% smaller with Boeing delivering a total of 183 aircraft during the quarter compared to their total deliveries of 199 during the same period a year ago. Boeing’s total deliveries currently stand at 352
According to Boeing chief executive officer Dennis Muilenburg, the company’s teams have been delivering better performance in every sector of the company’s business that can be seen in their second quarter earnings results along with the higher outlook for their annual earnings.
“Our robust cash flow enabled us to return more value to shareholders, invest in future growth and in our people, including a plan to accelerate pension funding that also reduces risk and cyclicality in our business.” added Muilenburg.
Boeing posted a loss of 37 cents per share of $243 million during the same period last year. During the second quarter this year, Boeing’s profits jumped to $1.76 billion or $2.89 per share beating most Wall Street forecasts of $2.57 per share.
Boeing added that it has been able to cut more than 6,000 of its global workforce which is more than 4% of its overall manpower in their efforts to cut operating costs and promote efficiency among its remaining employees.
New Full Year Earnings Outlook
The airplane manufacturer raised its forecast for its earnings from the range of $9.20 to $9.40 a new range of $9.80 to $10.00 per share.
For its deliveries, the company announced that its deliveries for the whole year
In the next five years, the company has projected a target of building service businesses worth $50 billion starting with the launch of Boeing Global Services back in July which will focus on offering its clients maintenance, technical, and analytical support services.
Last month, the company was able to acquire a $5.8 billion deal from China Aircraft Leasing Group which would place fifty orders of Boeing 737 MAX which is set to be completed by 2023. Boeing also hit a deal between US and Qatar that would send F-15 fighter jets worth $12 billion to the Arab state. The deal was signed by Jim Mattis, Defense Secretary for the United States and Khalid al-Attiyah who happens to be the Qatari Minister of State for Defense Affairs. Shares of the company then hit a new all time high of $196.21.
Boeing shares have jumped by 37% this year. It has jumped by more than 8% to a new record high on Wednesday’s trading.