Earnings Preview: Boeing

The Boeing Company (BA) is expected to report Q1 earnings before market open Wednesday Apr. 23, with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for EPS of $1.35 on revenue of $16.52B. The consensus range is $1.27 to $1.43 for EPS, and $15.81B to $16.93B for revenue, according to First Call.

In the company's Q4 earnings conference call, executives made several forward looking statements regarding FY08 and beyond. Boeing expects FY08 EPS of $5.70 to $5.85 vs. a consensus of $5.93, and FY08 revenue of $67B to $68B vs. a consensus of $69.57B. Boeing said it will provide 2009 guidance when Q1 results are released and sees strong EPS growth in 2009. The company committed to meeting 787 milestones, saying they intend to release 787 schedule in the company's Q1 earnings report, and they intend to remain "very active" in share repurchases. On April 9, Boeing announced a revised plan for first flight and initial deliveries of the 787 Dreamliner that includes additional schedule margin to reduce risk of further delays on the program. The schedule now targets approximately 25 deliveries in 2009.

Analyst Views

Despite the news of 787 delays, on April 10 Gabelli stated it believes the company can meet the new timetable, and maintained it Buy rating for Boeing. The firm also said that because of the new schedule, it thinks Boeing may be able to produce more planes than originally projected.

American Technology upgraded Boeing shares to Neutral from Sell on April 14, basing the upgrade on valuation, as it sees limited downside from current levels. The firm raised its target price to $88 from $73.