Boeing Co. (NYSE:BA) reported its first quarter financial results and surpassed Wall Street estimates in both earnings and revenue. Despite the trade war tensions, the aircraft manufacturer raised its 2018 full year guidance. Shares were trading 2.4 percent higher during Wednesday’s pre-market hours.
For the first quarter, Boeing reported revenue of $23.4 billion, increasing 6 percent year over year and topping Thomson Reuters’ estimates of $22.26. The company reported an EPS of $3.64, crushing Thomson Reuters’ estimates of $2.58.
Boeing’s revenue growth was reflected by the delivery of 184 commercial aircrafts, increasing 9 percent year over year. The commercial aircraft segment drove in revenue of $13.65 billion, increasing 5 percent year over year.
Boeing also said the higher volume in defense and service helped the quarter. Defense, space and security drove in revenue of $5.76 billion, increasing 13 percent year over year.
The segment is expected to see more growth, especially after landing a contract for 28 F/A-18 Super Hornets for Kuwait and a contract to support the Royal Canadian Air Force. Boeing forecasts revenue of $21.5 billion to $22.5 billion for the full year.
"Across Boeing, our teams performed at a high level in the quarter, driving revenue and earnings growth at all three business units, increasing profitability and operating cash flow, and delivering more value to our customers," said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg.
Despite the possible tariffs against steel and even aircrafts, Boeing raised its earnings in between $16.40 and $16.60, 50 cents higher than its prior forecast. Revenue remained the same in the range of $96 billion to $98 billion.
Boeing expects to deliver 810-815 commercial aircrafts in the year, almost on track to meets Mulienburg’s goal of 900 aircraft deliveries per year by 2020. Muilenburg said in an interview with CNBC that air traffic and passenger traffic is growing at approximately 6 percent to 7 percent a year, driving Boeing’s segment.
"Our team's strong first-quarter performance, combined with the positive market outlook across our businesses and our confidence in executing on our production and development programs, gives us a solid foundation to raise our guidance for the year.” said Muilenburg.
Boeing shares are up 14.03 percent this year.