Shares in Boeing Co (NYSE:BA) reached for the sky after the aerospace company topped estimates with its second quarter results.
The shares were up 7.8% at US$228.96 in mid-morning trading after the company lifted full-year guidance as its cost-cutting measures begin to bite.
Revenues in the second quarter fell to US$22,739mln from US$24,755mln in the same period of last year, with the company delivering 226 commercial and defence aircraft contracts.
Despite the fall in revenue, which was a little shy of market expectations of US$23bn, the company returned to the black.
On a generally accepted accounting principles (GAAP) basis, net earnings totaled US$1,761mln, versus a loss of US$234mln the year before.
Earnings per share (EPS) weighed in at US$2.89, versus a loss per share last year of 37 cents.
On the company’s non-GAAP interpretation, core EPS was positive at US$2.55, compared to last year’s loss per share of 44 cents. Analysts had been expecting core EPS of US$2.30.
For the full year, GAAP earnings per share guidance increased to between US$11.10 and US$11.30 from US$10.35 and US$10.55 previously. Core EPS (non-GAAP) guidance increased to between US$9.80 and US$10.00 from US$9.20 and US$9.40, primarily driven by improved performance across the company and a lower-than-expected tax rate.
Operating cash flow guidance increased by US$1.5 billion to US$12.25 billion on solid execution and a cash tax benefit from accelerating pension funding in the third quarter of 2017, Boeing said.
Additionally, capital expenditures guidance decreased by US$300 million to US$2.0 billion.
"Our teams are delivering better performance in every segment of the business, which is reflected in our strong second-quarter results and improved 2017 outlook," said chairman, president and chief executive officer Dennis Muilenburg.
"Our robust cash flow enabled us to return more value to shareholders, invest in future growth and in our people, including a plan to accelerate pension funding that also reduces risk and cyclicality in our business," he added.