Boeing Co raised its profit forecast for the full year as higher deliveries of jetliners during the third quarter had brought a large amount of cash and the cost of the 787 Dreamliner grew less than had been projected.
The results indicate that the Boeing factories are in high gear and its shares rose on the news. Investors have sought reassurance that global market for aerospace is not glutted with aircraft and that expenses for its 787, the first jet in the world built mainly of composite materials have finally come under control after four years of being tardy for its commercial debut.
Earnings excluding certain pensions expense for 2015 will be between $7.95 and $8.15 per share, said Boeing, topping a projection previously of between $7.70 and $7.90.
Profit for the third quarter was $2.52, which exceeded the estimates on Wall Street of $2.20.
Free cash flow of more than $2.3 billion surpassed estimates of analysts of $1.8 billion. Aircraft deliveries were up 7% to reach 199, including a record Dreamliner deliver of 37.
Manufacturers usually receive the bulk of their payments when planes are handed over to the buyers.
Boeing was up 1.8% the most on the Dow. The stock has advanced 6.8% this year through the end of business Tuesday and outpaced the S&P 500 index that had dropped 1.4% on the year.
Dennis Muilenburg the CEO held a conference call Wednesday morning with analysts and investors.
The quarter was a critical one for Boeing, said one analyst who wrote that the 2015 second half was an important time for Boeing, due to concerns over cyclical demand, the 787 being positioned to turn cash positive as well as the expectation for a strong trajectory of cash flow.
Boeing spent $1.5 billion to purchase 11 million shares during the most recent quarter, leaving $6 billion in its current repurchase authorization.
The buyback spending for 2015 has been $6 billion for more than 41 million shares.
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