The first months of 2012 brought good news for companies throughout the world’s economy. The new favorable economic context impacted Boeing’s earnings in the first quarter of the year bringing in a significant boost. According to Bloomberg, Boeing’s earnings increased 58 percent, the peak of the last five months.
Investors, analysts and markets on the overall were impressed with Boeing’s earnings for the first quarter. The company’s shares went up 4.3 percent to $76.37 this morning in New York trading.
According to the company’s report, Boeing earnings have jumped 58 percent this first quarter, to $923 million or $1.22 a share. One year earlier, the first quarter earnings report looked gloom, with only $586 million in revenue, at 78 cents per share. Revenue jumped 30 percent in the first quarter 2012, bringing in $19.4 billion, even more than what analysts expected.
The first quarter earnings have been influenced heavily by Boeing’s 137 commercial airplanes delivery. Apparently, the company scored bigger orders, for 4,000 commercial planes, rumored to have come from United Airlines United, but the report hasn’t been confirmed. This year, however, Boeing intends to deliver a maximum order of 85 747 and 787 jets. In 2011, Boeing only delivered 5 787 jets in the first quarter.
According to Chairman and CEO W. James McNerney Jr., the company has been focusing this quarter on improving revenue from the commercial airplane production and the delivery rates. Analysts have pointed out that the company’s success this quarter was due to the increasing sales of Boeing’s 737 jetliner, a solution much more fuel efficient.
Robert Stallard, analyst at RBC Capital Markets, seemed content with Boeing’s earnings for the first quarter. He argued that the upcoming quarterly reports from Boeing are going to bring more good news if the company can keep up with its schedule. Analyst Ray Neidl with Maxim Group has a similar take, but he added that the industry will see down the line an increase in orders for small or large commercial jetliners.
Alex Hamilton, managing director of EarlyBirdCapital told Reuters Boeing is now benefiting from investor confidence. “So, right now, the street is pretty much starting to buy into the story that they’re going to be able to do it. Personally, I would argue that is a huge sea change for Boeing”.
