Boeing shares jump as earnings beat estimates

Boeing (BA) beat analyst expectations with its second quarter earnings and saw revenue rise 11% in the wake of record breaking deliveries of commercial aircraft.

The world's largest plane maker reported revenue of $24.5 billion in the second quarter and posted earnings per share of $1.62, not counting special items. That was higher than the analyst consensus of $1.37, but less than the $2.42 per share reported during that period in 2014.

Counting special items, earnings per share was $1.59 as compared to $2.24 in the second quarter of last year.

“Record commercial airplane deliveries to customers worldwide drove solid revenue growth,'' Boeing President and CEO Dennis Muilenburg said in a statement. "And the strength of our overall portfolio and diligent focus produced significant operating cash flow during the quarter.''

There were 197 deliveries of commercial planes between April and June, a 9% uptick from that quarter in 2014. And the company has almost 5,700 commercial aircraft on order, a backlog worth $489 billion.

The innovative, but once-beleaguered and oft-delayed 787 Dreamliner program, continues to be on track, with 64 of the fuel-efficient jets delivered  during the first half of 2015. The company says that it has also been successful in starting to bring down the Dreamliner's unit costs.

Jeff Windau, industrials analyst for Edward Jones, said Boeing's strong second quarter results bode well for the rest of the year.

Boeing's better than expected results within its defense business, "the 787 progress . . . and the cash flow were all the big drivers in the quarter,'' Windau said. Also "the deliveries have been solid and we think near term that's going to remain a positive for the company."

Boeing said that its outlook on the marketplace is positive with airlines making money, and global  travel demand strong, fueling the need for more planes. The company has projected that there will be a need for more than 38,000 new commercial aircraft over the next two decades, nearly 1,300 more than previously forecast in 2014.

Boeing shares were up 1.19% to 146.73 in morning trading.