Boeing Co.’s share price up, increases its full-year profit forecast on strong third-quarter performance and strong demand for its jetliners

Boeing Co. made an official statement today that its earnings rose by 17% over the third quarter due to stable demand for its jetliners. In addition, the U.S.-based company also boosted its full-year profit forecast.

According to the statement by Boeing, the company projected that its earnings for 2014, excluding some pension costs, will be in the range of $8.10 to $8.30 per share. In comparison, the previous forecast pointed to earnings in the range of $7.90 to $8.10.

Boeing also revealed that its core profit over the third quarter amounted to $2.14 – a result that surpassed the analysts forecast of $1.97. The companys earnings, without excluding some pension and other expenses, amounted to $1.36 billion, or $1.86 per share over the third fiscal quarter.

Boeings sales were reported to have increased by 7% to $23.8 billion during the third quarter. This result also exceeded initial analysts expectations of $23 billion, or $8.29 per share. According to the company, its free cash flow declined from $2.32 billion to $317 million over the period.

However, the constantly rising production of the company has made some analysts express their concerns about whether demand is high enough in order to meet the newly produced aircraft.

Ken Herbert, an analyst at Canaccord Genuity Inc., wrote in a record from October 19th: “We believe the quarter will help sentiment on the stock. The key will be 787 execution and 777 orders over 2015.”

The demand for passenger jets has rapidly increased over the last few years. The constantly rising fuel prices also push up the demand for new and more efficient aircraft such as the Dreamliner of Boeing. The company stated that increased jetliner demand in China was beneficial for its performance. 186 jets were delivered to customers during the period from July to September in comparison to 170 units delivered over the same period a year earlier.

Boeing Co. was 2.26% up to close at $127.12 per share yesterday, marking a one-year increase of 4.65%. The company is valued at $91.60 billion. According to CNN Money, the 22 analysts offering 12-month price forecasts for Boeing Co. have a median target of $160.00, with a high estimate of $175.00 and a low estimate of $101.00. The median estimate represents a +25.87% increase from the last price of $127.12.