The world's number-two commercial airline maker, Boeing Co., said Wednesday Q2 net earnings increased to $1.05 billion ($1.35/share) compared to a $160M loss ($0.56/share adjusted) a year ago, beating analyst expectations of $1.16. Revenue jumped 13.6% to $17.02 billion, almost $1 billion higher than expected. Boeing raised its 2007 profit outlook to $4.80-4.95/share (up from $4.55-4.75) compared to $4.91 Street estimates. Revenue in its commercial airplane unit increased 22% ($8.7B), while revenue from its defense business was up only 3% ($8B). Boeing booked 360 commercial planes orders last quarter, 153 less than rival Airbus. It also began construction of its much-awaited 787 Dreamliner, already Boeing's most successful airplane with 683 contracts and a backlog of about $110 billion. Airbus's A350 won't be ready until five years after the 787 begins rolling out next year. At the recent Paris Air Show, Airbus booked 98 orders for the A350, causing some analysts to question 787 schedule slippage and a possible Airbus resurgence. In a July 9 note, Cowen & Co. said, "We think investors worry excessively about 787 risks and underestimate 2008-09 EPS upside." Shares are up 16.8% YTD, and are up another 3.3% in pre-market trading. See Boeing earnings call transcript later today.
Sources: Press release (.pdf), Bloomberg
Commentary: Boeing Company: Inconsistent Fundamentals, Stock Severely Overpriced • Boeing's 'iPlane': Two Suppliers That Stand To Benefit
Stocks/ETFs to watch: Boeing Co. (BA)
Earnings call transcripts: Boeing Q1 2007
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