The Boeing Co. beat Wall Street’s expectations for its third-quarter 2014 earnings, thanks to strong Asian demand for fuel-efficient 737 medium-range jets and U.S. orders for the P-8 Poseidon military aircraft.
The world’s largest aerospace company reported Wednesday morning revenue of $23.8 billion and $2.14 earnings per share, up from $22.13 billion of revenue and $1.80 earnings per share in the same period a year ago.
Analysts polled by Thomson Reuters had expected revenue of $23.02 billion and $1.97 earnings per share. The company’s share price rose in pre-market trading but was down 1.6 percent after the markets opened in New York.
Here are the main highlights from the earnings report:
- Boeing raised its guidance for 2014 earnings to between $8.10 and $8.30 a share, up from $7.90 to $8.10.
- The company reported a record backlog of 5,500 orders for commercial aircraft worth $430 billion. It received orders for 501 planes in the quarter.
- Commercial aircraft deliveries increased 9 percent from the same period a year ago, to 186 planes. For the first nine months of the year, deliveries increased 11 percent to 528 units. Revenue from commercial aircraft was up 15 percent to $16.11 billion.
- Boeing’s Defense, Space and Security division reports a backlog of $60 billion worth of orders, 37 percent from international customers. Revenue for the company’s military and space division was down 2 percent to $7.91 billion.
- Boeing’s military aircraft segment saw revenue rise 80 percent to $440 million, “reflecting higher P-8 deliveries.”
- Boeing launched production of the 737 MAX 200 , the fourth generation of the 737 family. Ryanair has ordered 100 of the more fuel-efficient planes.
- The 737 MAX currently has 2,300 orders, spurring the company to increase production to 47 planes a month by 2017 and 52 a month by 2018. The ramp-up will help the company meet demand for the newer medium-range commercial aircraft, which is soaring in Asia.