With growth in commercial plane deliveries, Boeing reported Wednesday a 1% rise in revenue during the second quarter and a 52% rise in net earnings compared to the same period a year earlier.
Revenue surpassed $22 billion during April, May and June, while net earnings reached nearly $1.7 billion, up from nearly $1.1 billion a year earlier, the company said.
For 2014, the company said it expects core earnings of $7.90 to $8.10 per share, up from its previous forecast of $7.15 to $7.35 per share.
Boeing CEO Jim McNerney said strong performance across the company's production programs drove the revenue and earnings growth with healthy operating cash flow of $1.8 billion.
We delivered our first 787-9 and our 8,000th 737, successfully completed a key missile defense intercept test, and delivered our 100th EA-18G Growler to the U.S. Navy, McNerney said.
He said challenges facing the KC-46A Tanker program are resulting in higher spending to maintain the schedule, but issues are well understood. Testing fully provisioned tankers is expected in early 2015, he said.
Christian Mayes, an industrials analyst with Edward Jones Equity Research, said the performance beat expectations, but was less impressive when learning that $524 million came from in tax benefits that aren't expected to recur.
The headline number looks really good, but peering into it a little bit deeper, it was helped a lot by lower taxes, said Mayes, who has a hold rating on Boeing stock. I don't look at it as that high a quality of beating expectations in this quarter.
Mayes said he's looking for manufacturers to speed up production because of huge backlogs, so he thinks suppliers are in a better position than large manufacturers.
Boeing's backlog of 5,200 commercial plane order remains diverse, McNerney said.
With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse, McNerney said. Overall, our strong first-half financial performance, sustained focus on growth and productivity, and positive market outlook support our increased earnings guidance for the year.
Boeing shares fell 2.5% to $126.57 in early trading.