Aerospace and defense contractor Boeing outpaced Wall Street expectations in the second quarter, as it returned to profitability despite a dip in operating income at its Network & Space Systems unit.
The Chicago-based company posted a whopping $1.76 billion in companywide net income, compared with $234 million in red ink for the same period last year. That translated into earnings of $2.55 per share for a three-month period for which a FactSet analyst consensus had forecast earnings of $2.30 per share.
Boeing’s companywide revenue rose 1 percent in the quarter to $24.76 billion.
Quarterly operating profit at Boeing’s Network & Space Systems slipped 1 percent from a year earlier to $152 million. Unit revenue fell 8 percent in the quarter — to $1.67 billion — amid expanding competition from New Space competition such as SpaceX and others.
Boeing chairman-CEO Dennis Muilenburg lauded the company’s quarterly financial results.
“Our teams are delivering better performance in every segment of the business,” Muilenburg said. “We added to our large and diverse order backlog with key wins in commercial airplanes, defense, space and services.
“As we look to the second half of the year, our teams are focused on accelerating productivity, quality and safety improvements across the company, while completing key development efforts and delivering better capabilities and economics to our customers.”
Boeing continues to mark positive development milestones on its Orion spacecraft, set to launch on the next-gen SLS rocket it has under development as well.
Boeing and SpaceX hold NASA contracts to begin shuttling astronauts to the International Space Station sometime in the next few years.
Boeing shares (BA: NYSE) surged after the financial results were released just prior to market trading July 28.
The stock rose $17.81, or 8.3 percent, to $230.12 by midday, with a 52-week trading range of $126.31-$230.43.