Usually it is common for investors to be prepared for a surprise but Boeing Co (NYSE:BA)’s robust Q3 profit of 2014 that declared earnings worth more than $2 per share caught everyone unaware. What was even more surprising, according to Richard Aboulafia of Teal Group Corporation was the increase in production costs that Dreamliner 787 absorbed. The expert, who happens to occupy the rank of Vice-President of Analysis Division, reiterated several times on CNBC that not only were the investors surprised but that it was an outcome of several factors.
One of the first points that he made was that Boeing Co (NYSE:BA) had reported an 18% increase in profit which in monetary terms amount to $1.36 billion. This in itself was indicative of the fact that the company was earning well for itself in spite of the cost-cutting measures and overall reduction in Government spending where this sector was concerned. That said, he felt that China was likely to feature more prominently in its future strategy and that by 2030, the Asian country would manage to eclipse even USA in its demand for jetliners.
Thanks to global airlines enjoying good financial health and constant hike in fuel prices, companies the world over have been searching for contemporary and efficient aircrafts like the Dreamliner and this has worked in Boeing Co (NYSE:BA)’s favor. As a result, the company delivered as many as 186 jets to users within a short span of three months, between July and September. With the current model 777 proving to be lucrative, the company has made known its plans to roll out an improved version namely 777X which is purported to be an improvement on its predecessor.
Boasting of a healthy backlog of $490 billion at the end of Q3, the company has revised its core earnings per share to $8.30 per share thus indicating a strong performance. Currently poised at Zacks rank #2, Boeing Co (NYSE:BA) has bagged an order worth $4.2 billion from NASA wherein it will be required to build space-taxis meant for transporting astronauts into space.
Read:
