Boeing beats Street on uptick in deliveries

Boeing significantly beat analyst estimates in the first quarter with earnings per share of $1.97.

With special items, earnings were $1.87 compared with $1.28 a year ago, up 46%.

BA was down 2.26% to $149.86 in late morning trading.

Strong deliveries of commercial jets boosted revenue to $22.1 billion for the world's largest plane maker, an 8% uptick compared to last year.

"Boeing delivered . . . higher revenue, healthy core operating margins and double digit growth in core earnings per share,'' Jim McNerney, Boeing's chairman and CEO said in an earnings call with investors Wednesday.

With commercial airplane deliveries spiking 14%, to 184, as compared to the first quarter of last year, commercial plane revenue rose 21% to $15.4 billion. Those deliveries included 30 787 Dreamliners, the landmark, fuel saving jet that appears to have gotten back on track after earlier setbacks involving a faulty battery system.

Boeing reported that more than 5,700 commercial aircraft, worth $435 billion, are in the pipeline, and the company booked 110 new orders during the first three months of the year.

Lower fuel prices do not seem to be deterring airlines in their quest for more fuel efficient, technologically advanced aircraft, McNerney said, adding that profits are more of a factor in whether airlines focus on bolstering their fleets.

"These remain very good times for our industry,'' he said noting that airlines are making money, and air traffic trends globally remain "healthy.'' Boeing forecasts the industry will need 37,000 commercial planes over twenty years.

Jim Corridore, of S&P Capital IQ said in an investors note that Boeing's adjusted earnings per share was lower than his firm's estimate of $2.05, though it was higher than consensus.

"Revenues were a bit weaker than we expected, driven by lower defense sales,'' he said. However, "we see backlog as healthy and remain positive on commercial aerospace demand.''

S&P Capital IQ cut its 2015 earnings per share estimate to $8.58 from $8.66 but that was still higher than Boeing's own adjusted estimate of $8.20 to $8.40.