Boeing (BA) shares rose on Wednesday after the airplane manufacturer beat earnings expectations and raised its full year guidance. The company delivered 150 airplanes, up from 118 a year ago. And the company’s defense business showed growth in a tough environment, as sales rose 6.6%.
Looking ahead, Boeing is already preparing for defense-related sales to fall. It’s bosting employment in its commercial division and reducing it in defense. Investors appear to be okay with that trade-off. As S&P Capital IQ analyst Richard Tortoriello wrote:
“Although defense margins slipped in Q2, revenue grew 7%, and backlog remains strong in our view. Although we see BA as subject to risk of U.S. defense budget sequestration in 2013, we view commercial plane demand as unusually strong, with nearly 4,000 aircraft on order and prospects for further 737 MAX demand.”
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