Key Takeaways
- Boeing reported a smaller-than-expected loss, and plane deliveries skyrocketed.
- The company said it is ramping up production on rising demand.
- Shares jumped to their highest level in more than a year and a half following the news.
Boeing (BA) was the best-performing stock in the Dow after the plane maker reported a lower-than-expected quarterly loss and a big jump in aircraft deliveries.
Boeing posted a fiscal 2023 second quarter loss of $0.82 per share, with revenue up 18% to $19.75 billion. Free cash flow came in at $2.6 billion. All three were better than analysts’ estimates.
Deliveries at the commercial airplane division rose 12% to 136, and revenue soared 41% to $8.84 billion. The defense, space, and security unit had sales of $6.17 billion, virtually the same as a year ago. Global services revenue added $4.75 billion, a gain of 10%.
CEO Dave Calhoun said the company is “well positioned to meet the operational and financial goals we set for this year and for the long term.” He added that because of strong demand, Boeing is “steadily increasing our production rates and growing investments in our people, products, and technologies.”
Boeing noted it was ramping up manufacturing of its best-selling 737 Max aircraft to 38 a month from 31, and from three to four a month for the 787 Dreamliner.
Shares of Boeing jumped over 8% on Wednesday to their highest level since November 2021 following the news.