Boeing earnings Q3 2018

Andrew Matthews – PA Images | PA Images | Getty Images

A Boeing 737 Max gives a display during the opening day of the Farnborough International Airshow in Hampshire. (Photo by Andrew Matthews/PA Images via Getty Images)

Boeing shares rose Wednesday as the company reported strong third-quarter earnings on the back of a robust defense business and more efficient commercial aircraft production. The company also raised its 2018 earnings forecast, in what looks to be a record year for revenue.

The aerospace giant reported adjusted earnings of $3.58 a share, topping Wall Street expectations by 11 cents according to analysts surveyed by Refinitiv. Third quarter revenue came in a $25.15 billion, which was over $1 billion more than analysts’ forecast.

Boeing raised its full year 2018 earnings forecast to a range of $14.90 to $15.10, up from its previous guidance of $14.30 to $14.50. Boeing may see its full year revenue top $100 billion for the first time, as well.

“This strong underlying performance, along with growth across our businesses we’ve seen throughout the year, give us confidence to raise our 2018 revenue and earnings guidance and reaffirm our operating cash flow guidance,” Boeing CEO Dennis Muilenburg said in a statement.

Boeing landed billions in military contracts this summer which Muilenberg highlighted and said was “important new defense business.” The Navy selected Boeing to develop the MQ-25 unmanned aircraft system and the Air Force awarded Boeing $9.2 billion to build the T-X trainer aircraft. Boeing also landed a $2.4 billion contract to build the MH-139 helicopter for the Air Force.

Boeing delivered 190 commercial airplanes in the third quarter, bringing its total deliveries for the year to 568. The airplane-making business had fallen short of estimates in the second quarter but Boeing held to its forecast that it would deliver at least 810 airplanes this year.

“What really surprised us to the upside was aerospace margins in the 13 percent range and they’re raising their guidance for that,” Jefferies analyst Sheila Kahyaoglu said on CNBC’s “Squawk Box.”

“The company came through and delivered on that business,” Kahyaoglu added.

Boeing shares slipped 2.3 percent over the last three months but the stock is still up 18.7 percent for the year as of Tuesday’s close of $350.05 a share.