Boeing Co.’s 787 Dreamliner has been bad news lately. It was grounded for nearly four months after overheated lithium-ion battery packs caused fires on two of the aircraft. A third caught fire July 12 while parked at London’s Heathrow Airport, apparently a problem with its emergency-locator transmitter.

But that’s not the full story. The 787 is also giving a huge boost to Boeing’s BA, +0.04% bottom line.

Here’s the evidence: Excluding one-time items, Boeing said it reported core second-quarter earnings Wednesday of $2.03 billion, or $1.67 a share. That’s up 13% from the year-ago period. It’s also 10 cents a share more than Wall Street expected. Stepped up deliveries of the 787 is a big reason for the improvement.

And for all the aircraft’s teething problems, analysts overwhelmingly claim Boeing won't suffer because the 787 offers features — light weight, speed, fuel efficiency — that airlines want. At the same time, Boeing has convinced aviation authorities it can resolve system problems on the new jetliner as they arise.

— Jim Jelter

Bloomberg

Boeing’s second-quarter sales topped $21.82 billion, up 9% from the year-earlier quarter. That’s well above the $20.79 billion analysts surveyed by FactSet had expected.

Here’s how the revenue breaks down: Commercial Airplanes, which constitute the bulk of Boeing’s business, delivered 169 aircraft in the second quarter, up 13% from 150 in the year-earlier quarter. Deliveries brought in $13.62 billion in revenue, up 15% from the year-ago period. At the same time, the accelerated delivery rate was accompanied by a 10.7% operating margin, up from 10.2% a year ago.

Boeing can now count 982 Dreamliners on its order book, of which 66 have been delivered. While there have been some cancellations due to delays in Boeing’s 787 delivery schedule, the company actually picked up a batch of new orders at the Paris Air Show.

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But the 787 isn’t the only hot item for Boeing’s commercial business. It has stepped up deliveries of its upgraded, narrow-body 737s as well, which have sold well among airlines flying lots of short- to medium-range routes.

All told, Boeing’s commercial division has been a major engine behind U.S. exports and a source of jobs here at home, both in assembly of the plane and the manufacture of its many parts.

Overall, Boeing’s commercial segment now has orders for 4,800 aircraft on its books, which the company values at a record $339 billion.

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The rest of Boeing’s business — at about 40% of overall revenue — is lumped mostly into its Defense, Space & Security segment. Second-quarter revenue for the military aircraft slipped 4% to $3.89 billion, mainly due to fewer deliveries, while space systems rose 5% to $2.05 billion on rising sales of commercial satellites. Global Services and Support was up 3% at $2.25 billion.

Boeing Capital Corp., its financial unit, posted $104 million in revenue last quarter, down from $113 million in the second quarter of 2012.

Solid sales gains have driven big gains by Boeing’s stock. Despite setbacks with its flagship 787 aircraft, Boeing shares are up 43% year-to-date as of Tuesday’s close. Boeing is the top performer so far this year in the Dow Jones Industrial Average, up 43% compared with 18.8% for the index.

Analysts believe it has more room to grow. Boeing shares are currently trading at $107.73. The 23 analysts surveyed by FactSet have, on average, a $116.23 target on the company’s share price.

Given progress in delivery schedules and operating margins, Boeing raised its full-year adjusted earnings outlook Wednesday to $6.20 to $6.40 a share. It had been $6.10 to $6.30.

Wall Street analysts had already beaten them to the punch, however. FactSet shows the average analyst’s earnings estimate was already at $6.50 a share before Boeing’s latest outlook.

The company now expects 2013 revenue to total between $83 billion and $86 billion, which is pretty much in line with the $84 billion analysts expect.

While Boeing’s latest quarterly report confirms investors’ confidence in the company, a couple of concerns linger. One of those is whether Boeing can meet targeted higher build rates for its 787 and 737 aircraft.

Another concern is spending cuts by the Pentagon. The White House and Congress’s infamous squabbles over military spending leave Boeing vulnerable to sequestration, and its defense segment revenue has already been dinged.