Earnings Preview: Boeing

Boeing (BA) is expected to report Q2 earnings on Wednesday, October 21 before the market open with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for EPS of ($2.12) on revenue of $17.18B. The consensus range is ($2.45)-($1.87) for EPS, and $16.15B-$18.95B for revenue, according to First Call. Boeing noted it will record a $1B charge in Q3, attributed to a delay in producing a new version of the 747-8 series freighter jet, causing slow sales and late design changes. The company's problem filled 787 program developed a new wrinkle during the quarter when production of the plane's fuselage parts was halted after flaws in the fuselage's composite skin were discovered. It was initially felt the halt could push the Dreamliner's first flight date back further. However, in mid October, Boeing announced the fixes were progressing well, and the 787 was still on track to fly by the end of the year. Given the problems in the company's two main airline projects, investors may want to prepare for a let down in Q3.

Comments

[FleetBuzz E...:]

747-8 program is already in a forward loss position and has nothing to do with the "slow sales".

Sales have been in the can since cargo traffic fell off the cliff last fall and continues to be decimated - the only saving grace is that there have been zero 747-8F cancellations.

www.fleetbuzzeditorial.../

This is a one off charge that will likely saddle the next few quarters with dead weight until it flies and enters service.

The real issue is the 787 and whether the fix works, since its being installed concurrently on the flight test airplane and static test airplane.

If it flies by year end, I would expect zero deliveries in FY10. Even ANA is gearing up for first delivery late on in Q4 2010/Q1 2011.

Oct 20 01:10 PM