Boeing´s stock increased after the company announced their earnings for the third quarter this week. The strong results came from a more competitive aircraft and solid business practices of cutting costs.
Adjusted income was $3.58 a share. The revenue for the third quarter reached $25.15 billion, which was over $1 billion more compared to what analysts estimated.
Boeing´s earnings for the complete year of 2018 increased from $14.90 per share to $15.10 per share. Boeing may actually reach a full-year profit of $100 billion for the first time ever.
According to CEO Dennis Muilenberg, Boeing’s profit was a result of all military contracts, and the CEO called Boeing an important and innovative defense business.
Boeing was chosen by the Navy to improve the MQ-25 aircraft system. The Air Force awarded a contract of $9.2 billion to Boeing for manufacture the T-X trainer aircraft. In addition to this, Boeing also received $2.4 billion to build the MH-139.
Boeing paid $176 million in additional costs for the KC-46 tanker aircraft during the third quarter. The total cost for the Air Force contract related to the KC-46 program was $3.6 billion; charges that Boeing paid.
Boeing distributed a total of 190 commercial aircraft during the third quarter, giving it a total of 568 for the year. Although the airplane-making industry saw a decline during the second quarter, Boeing has been able to manufacture 810 airplanes this year.
Boeing continues as the leader in manufacturing, particularly with the 737 aircraft. Its main target is to increase production to 52 aircraft monthly. According to an analyst in the industry, Boeing could reach that production figure of 52 aircrafts a month by the end of the year.
Analysts are keeping an eye on President Donald Trump´s trading problems with Beijing since China is a very important client of Boeing representing about a third of the corporation´s aircraft production.
Although it is important investors keep an eye on China, analysts are not worried Boeing will be hit hard due to the ongoing trade conflict between Washington and Beijing.
Boeing´s stock ended at $350.05 share in Wednesday trading.