Earnings Preview: Boeing

The Boeing Company (BA) is expected to report Q2 earnings Wednesday, July 23, before market open, with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for EPS of $1.22 on revenue of $17.24B. The consensus range is $1.19c to $1.28 for EPS, and $16.83B to $17.62B for revenue, according to First Call.

The Boeing Company said on July 10, its Q2 financial results will include a charge of approximately 22c per share on previously acknowledged delays on its Airborne Early Warning & Control program. The pre-tax charge on the AEW&C program is estimated to be approximately $250M and is primarily due to subsystem development issues on the electronic warfare and ground support systems as well as additional time required for integration testing. Despite the charges the company reaffirmed its FY08 EPS guidance of $5.70 to $5.85 vs. consensus of $5.96. The company also sees strong double-digit earnings growth in FY09 with EPS guidance of $6.80 to $.7.00 vs. consensus of $6.97.

Analyst VIews

Boeing announced in July higher than expected Q2 airliner deliveries, but not all analysts believed the news assured the company long-term success. Am Tech stated on July 7 that it sees surging fuel costs eventually causing Boeing's customers to postpone or even cancel deliveries from Boeing. The firm lowered its 2009 EPS estimate for the company by 10c to $6.75, and it dropped its 2010 estimate by 55c to $6.70. The firm maintained its Neutral rating.