Filed Under: ,
Tickers in this Article: BA
The Boeing Company (NYSE:BA) announced its results for the most recent quarter on October 24, 2012. Boeing is an aerospace firm that designs, develops, manufactures, sells, and supports commercial jetliners, military aircraft, satellites, missile defense, and human space flight services.

A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Earnings: Quality Means Everything

The Numbers: The Boeing managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported $1.35 per share versus the $1.10 per share estimate and revenues of $20.01 billion versus the $19.37 billion estimate. EPS fell 7.5% while revenue climbed 12.9% from the same period last year. The Boeing's revenue has grown during each of the past four quarters on a year-over-year basis. The Boeing reported profit of $1.03 billion during the third quarter. According to the reported number, this is down 6% from last year's figures. With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases.

Management Quote: "Strong core operating performance drove increased earnings in both our major businesses, along with higher overall revenues, improved cash flow, and solid earnings per share even as pension headwinds rose," said Boeing Chairman, President and one Chief Executive Officer Jim McNerney. "Our Defense, Space & Security business maintained double-digit margins in a challenging environment while Commercial Airplanes continued to build momentum with 787 deliveries and 737 MAX orders. Underpinned by our solid performance to date and positive outlook, we are raising our year-end guidance for revenue, earnings and operating cash flow. We remain well positioned for long-term growth with a clear focus on quality, productivity and disciplined program execution," McNerney said.

A Look Back: Net income has increased 21% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 57.5% from the year-earlier quarter.

Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from $1.19 a share to $1.10 over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. Over the past three months, the average estimate for the fiscal year has climbed from $4.48 per to share to $4.57.

comments powered by Disqus

Trading Center