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Shares of Boeing Co (NYSE: BA) surged 6.24% premarket after the company reported a surprise profit in Q2, which marked its first profitable quarter since 2019.
The aeroplane maker reported a surge in revenue to $17 billion, beating analysts estimates of $16.6 billion, with revenues from its commercial division soaring 268% to $6.015 driven by the delivery of 79 plans compared to 20 in a similar period last year.
Boeing’s defence division recorded a 4% rise in sales to $6.88 billion, driven by higher KC-46A Tanker and P-8A Poseidon maritime aircraft sales.
The company noted that demand for its troubled 737 Max aeroplane rose after United Airlines ordered 200 planes and over 30 carriers returning the plane to service since November 2020.
Boeing has hinted at increasing the production of its 737 Max planes to 31 each month by early 2022 from the current 16 before ramping up production to 42 planes monthly by fall 2022.
Investors cheered the earnings report during the premarket session as many wait for the market open to jump in.
However, analysts have warned that the spread of the delta variant of the coronavirus could affect demand for commercial planes as airlines scale back their operations as more countries reinstate lockdown measures.
Regardless, today’s results were a welcome relief for long-term Boeing shareholders who have witnessed Boeing shares fall almost 50% from a high of $445 in February 2019 to their current price in the $230s.
*This is not investment advice.
Boeing share price.
Boeing shares surged6.24% premarket to trade at $236.15, rising from Tuesday’s closing price of $222.27.
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