Boeing third quarter profit takes off

Shares in Boeing jumped in early trading in New York on Wednesday, after the aerospace giant lifted its full-year outlook on the back of a strong third quarter performance.

The Chicago-based company lifted its per-share earnings estimate for 2015 from $7.95 to $8.15, raising its revenue expectations from $95bn to $97bn.

The decision came as Boeing reported a 25% year-on-year increase in third quarter profit to $1.7bn, driven by continued growth in deliveries of commercial airplanes, while revenue climbed 8.7% to $25.8bn.

The figures were ahead of analysts’ expectations for a profit of $2.22 per share on revenue of $24.7bn.

Shortly before the opening bell in New York, the world’s largest aerospace company reported its core operating earnings per share, which exclude volatile items such as pension components, rose 17.7% year-on-year to $2.52.

Boeing said revenue in its commercial airplane division rose 10% to $17.69bn, as deliveries rose 7% to 199 planes, while operating earnings fell 1.6% to $1.77bn.

Operating margin fell from 11.2% to 10% as a result of an increase in research and development costs and a higher number of deliveries of the company’s 787 Dreamliner.

Meanwhile, Boeing’s defence business saw its revenue grow 5.5% from the corresponding period in 2014 to $8.35bn, as profit grew 19% to $1.02bn.

Boeing shares were up 2.18% to $141.91 at 1436 BST on Wednesday.