Boeing's (NYSE:BA) stock edged upward after the aircraft maker reported higher revenue and maintained its plan to increase output of its popular 737 Max jet. Shares advanced less than 1% to close at $203.03.
Boeing's (BA) revenue rose 28% from a year earlier to $17.92 billion, beating the average estimate of $17.56 billion among Wall Street analysts. Commercial airplane revenue jumped 60% to $6.7 billion on higher deliveries of the 737 Max and 787 Dreamliner.
The company forecast that it will deliver 400 to 450 of its 737 Max passenger jets this year as it increases output to 38 planes a month from 31 a month currently. The company plans to speed up production to 50 a month by 2025 to 2026.
The guidance signals that output won't be affected by this month's pause in 737 Max deliveries after a supplier discovered it had incorrectly installed parts of the planes.
"Demand is strong and our portfolio is well positioned," Dave Calhoun, president and CEO of Boeing (BA), said in a regularly scheduled conference call with analysts. "We have a robust pipeline of development programs, and we're innovating in new capabilities to prepare for the next generation of products."
The company has worked to increase production of passenger jets amid a rapid rebound in air travel after the lifting of pandemic lockdowns, most recently in China. Investors have looked for signs that Boeing (BA) will be allowed to resume deliveries of the 737 Max to airlines in the country, the second-biggest aviation market.
China four years ago had grounded the 737 Max because of safety concerns after two fatal crashes in Ethiopia and Indonesia. As travel bounces back in China, the plane is resuming flights.
"With respect to China, our focus has been and is on supporting our customers and their return to service," Calhoun said during the earnings call. "All Max operators have returned to flying airplanes in service, and 45 of their 95 airplanes are back in the sky."
Boeing (BA) kept its guidance of $4.5 billion-$6.5 billion of operating cash flow and $3.0 billion-$5.0 billion of adjusted free cash flow for the year.
The company reported an adjusted loss per share of $1.27, compared with the average estimate for a loss per share of $1.05 among Wall Street analysts.
Boeing's (BA) backlog is valued at $411 billion, including more than 4,500 commercial airplanes. Orders for aircraft helped to boost durable goods orders for March more than estimated.