Airplane manufacturer Boeing reported a first-quarter profit for the first time in two years, with the company’s stock price now up by more than 5% today.
Boeing Records Profit In Q1
Plane manufacturer Boeing reported its first-quarter earnings earlier today, and it delivered exceptional results. This is the first time Boeing is recording profits in the first quarter in two years.
The company recorded losses in six consecutive quarters, with the Coronavirus pandemic further affecting its business. Boeing’s revenue went up by 44% to reach $17 billion, after recording $11.8 billion a year earlier. The $17 billion recorded in the first quarter surpassed the analyst estimates of $16.54 billion.
Overall, the adjusted earnings per share were 40 cents compared to a per-share loss of 83 cents. As stated earlier, the revenue was $17 billion vs. $16.54 billion. The increase in Boeing’s revenue came as a result of a surge in deliveries of commercial jetliners. Commercial Airlines are starting to pick up from the pandemic slump, and this has helped Boeing record profits in this quarter.
CEO Dave Calhoun said the company still has a long way before it recovers. However, it is encouraging for Boeing that the commercial market is improving. Boeing had previously revealed that it would slash jobs to about 130,000 employees before the end of the year. However, Calhoun said they would likely retain the current headcount due to the increase in demand.
The revenue in Boeing’s commercial airplane unit surged by roughly 270% from a year earlier. Boeing recorded $6.02 billion in revenue from this sector, but it still reported negative margins of 7.8%.
Boeing’s Shares Rally By Over 5%
The shares of Boeing performed excellently at Wednesday’s pre-market trading session after the company reported its earnings. At the time of this report, BA is trading at $234, up by 5.5% over the past few hours.
Year-to-date, the company’s stock price has performed well. It began the year trading at $202 per share, and it is now up by over 10%.