Boeing raises company’s outlook despite Dreamliner recent issues

Boeing Co., the US-based aircraft-maker, posted a better-than-expected 13% jump in quarterly profit after delivering more commercial jets agreements, erasing concerns about the 787 Dreamliner and sending its shares up 1.6% to an all-time high. Boeing raised its full-year revenue and profit forecasts after the strong second-quarter performance.

The company said it expects revenue for the whole year to be of $83 billion to $86 billion, up from its previous guidance of $82 billion to $85 billion. It forecast full-year earnings of $5.10 to $5.30 per share, up from its previous estimate of $5.00 to $5.20.

“As expected, second-quarter EPS beat, but even more impressive was BCA (Boeing Commercial Airplanes) margins exceeded expectations despite ramping deliveries of low margin 787s,” Sterne Agee & Leach Inc analyst Peter Arment wrote on a research note cited by Reuters. Operating margins in the commercial airplanes unit rose to 10.7% in the quarter from 10.2% a year ago.

Boeing experienced fresh problems earlier this month when an empty Ethiopian Airlines 787 caught on fire in Londons Heathrow airport. The aircraft was grounded earlier this year due to the overheating of lithium-ion back-up batteries. Regulators cleared the jets to fly again in April. UK investigators have given Boeing some limited comfort by saying there is no evidence the fire was caused by the Dreamliner’s lithium-ion batteries this time. The batteries overheated on two 787s in January. However, the investigators are focused on the possibility that an emergency locator transmitter on the Dreamliner caused the fire, and last week recommended these devices be disabled on all 787s.

Revenue added 9% to $21.8 billion. Commercial aircraft revenue rose 15% in the quarter. Analysts had expected $1.58 per share, excluding items, on revenue of $20.78 billion, according to Thomson Reuters. Revenue from Boeings Defense, Space & Security unit was flat.

Boeing shares are up to a high of $108.03 in trading on the New York Stock Exchange on Wednesday which is a 0.22% increase from yesterday. Companys shares rose more than 43% year to date.