Boeing outperformed Wall Street expectations for the third quarter, as the aerospace and defense contractor posted a 34 percent increase in profit and offered bullish projections for its commercial aircraft operations.
The boost to Boeing’s bottom line came despite an 8 percent drop in three-month revenue to $2.28 billion.
“Solid operating performance across our commercial and defense and space businesses in the third quarter again generated strong cash flow for Boeing, which continues to fuel investments in our future and enable us to deliver compelling returns to our shareholders,” Chairman-CEO Dennis Muilenburg said. “We also captured key orders, reinforcing the strength of our large and diverse order backlog.”
Despite the generally upbeat financial results, Boeing’s Network & Space Systems unit saw an 86 percent sag in quarterly income at $35 million. Unit revenue declined 20 percent in the quarter to $1.70 billion.
The quarterly results were released prior to the start of stock market trading Oct. 26.
Bullish exec comments on expectations for orders of Boeing’s wide-body jetliners prompted premarket jockeying, but the stock (BA: NYSE) closed up almost 4.7 percent to $145.54. The stock recently has been trading toward the higher end of a 52-week range of $102.10-$150.59.
Boeing’s key NASA contracts include providing engineering support services to the International Space Station until 2020.
Boeing’s 50 percent co-owner of launch-services contractor United Launch Alliance — Lockheed Martin — reported quarterly financial results Oct. 25.