Thursday, January 21, 2010

Boeing Co. (NYSE: BA): Q4 Earnings Preview 2009

Boeing Co. (NYSE: BA) is scheduled to release its financial results for fourth quarter of fiscal year 2009 before the market open on Wednesday, January 27, 2010. Analysts, on average, expect the company to report earnings of $1.36 a share on revenue of $17.57 billion. In the year ago quarter, the company reported a loss of 8 cents per share on revenue of $12.68 billion.

The Boeing Company, together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. It is the largest NASA contractor.

The airplane maker was negatively impacted by severe economic downturn as airlines reduced purchases of new aircraft amid soft demand for air travel and freight services. In addition to the downturn in the economy, Boeing has its own problems. The company's much-awaited, fuel efficient 787 Dreamliner has faced several production glitches and is running behind schedule.

The Chicago, Illinois-based company reported that it swung to third quarter loss of $1.56 billion, or $2.23 per share, compared to net earnings of $695 million, or $0.96 per share, in the same quarter last year. Net loss from continuing operations for the latest quarter was $1.56 billion, or $2.22 per share, compared to net income from continuing operations of $683 million, or $0.94 per share in the year-ago period. Total revenues for the quarter grew 9% to $16.69 billion from $15.29 billion in the prior-year quarter. Analyst, on average, expected the company to report loss of $2.12 per share on revenue of $17.18 billion.

In October, the aerospace and defense giant lowered its earnings outlook for fiscal year 2009 to include the 787 cost reclassification and 747 charge. The company now forecasts earnings in a range of $1.35 to $1.55 per share, compared to the prior range of $4.70 to $5.00 per share. The company, however, reaffirmed its forecast for full-year revenue in a range of $68 billion to $69 billion. Operating cash flow for the year is still expected to be greater than $2.5 billion, including discretionary pension contributions of about $0.5 billion and an assumption of $0.8 billion for new commercial airplane financings.

Early in January, the company said it delivered as many as 122 commercial airplanes during the fourth-quarter and delivered 481 commercial airplanes for the full-year, matching its previously announced forecast of 480-485 airplanes schedule. For the full-year, Boeing reported its commercial airplanes backlog remained strong at 3,375 airplanes. It registered 263 gross and 142 net commercial orders for the year even as air travel and freight declined and carriers worldwide experienced severe economic challenges.

Last month, Boeing Co. announced that the newest member of its commercial jetliners, 787 Dreamliner took its first flight today from Paine Field in Everett, Washington, and safely landed at Seattle's Boeing Field. Recently, the airplane maker said that it has completed initial airworthiness testing on the 787 Dreamliner. The company has 840 orders for the 787 Dreamliner from fifty-five customers around the world, making the 787 Dreamliner the fastest-selling new commercial jetliner in history. The company has scheduled the first delivery of the 787 Dreamliner in the fourth quarter of 2010.

The company is poised to benefit from worldwide economic rebound and an uptick in travel demand. Moreover, the long-delayed 787 program appears to be moving ahead. "We’re starting to see the economy turn around after a really difficult year last year in terms of traffic,” Randy Tinseth, Boeing’s marketing chief, said recently in an interview. Growth in travel and cargo shipments this year will translate into airline profits and “then we can start to see an increase in demand for new airplanes in 2012,” he said.

The company's stock currently trades at a forward P/E (fye 31-Dec-10) of 14.10 and PEG ratio (5 yr expected) of 5.83. In terms of stock performance, Boeing shares have gained 51 percent over the past year.

Full Disclosure: None.
Related Posts with Thumbnails

Wikinvest Wire