WASHINGTON (MarketWatch) — Boeing Co. affirmed its 787 Dreamliner and 747-8 first-delivery targets on Wednesday, but the company reduced its guidance for full-year deliveries.
Shares of Boeing rose more than 3% ahead of the opening bell on Wall Street. The stock has declined about 8% in the last three months, though for the year the blue-chip component’s still up about 2%.
Earlier this summer, the Chicago-based aircraft manufacturer said it was halting production of its two newest aircraft, citing design changes and part shortages.
The move worried some Wall Street analysts and investors that the planes would fall further behind their delivery schedule. The 787 alone is already more than three years behind its original first-delivery target — May 2008.
Instead, Boeing merely trimmed its 2011 delivery guidance for both aircraft to a range of 25 to 30 units, from a prior range of 24 to 40.
“Flight testing activities on the 787 and 747-8 Freighter programs are nearing completion,” the company said in its quarterly earnings release. “First deliveries of the 787 and 747-8 Freighter are expected later in the third quarter.”
For the second quarter, Boeing said earnings rose 20% on the back of more wide-body jet deliveries and improved production in both its commercial and government businesses, prompting the company to hike its full-year profit outlook.
Earnings for the most recent period increased to $941 million, or $1.25 a share, from $787 million, or $1.06 a share, earned in the year-ago second quarter. Revenue rose 6% to $16.54 billion from $15.57 billion, with commercial airplane deliveries up 4% to 118.
Analysts surveyed by FactSet Research had been looking for earnings of 98 cents a share, on average, with sales pegged at $16.47 billion.
And for the full year, Boeing raised its earnings outlook to between $3.90 and $4.10 a share, up from a prior view of $3.80 to $4 a share. Wall Street‘s consensus for 2011 earnings stands at $4.12 a share.
Source: http://www.marketwatch.com
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