Earnings Preview: Boeing sentiment mixed ahead of Q4 earnings report

theflyonthewall.com

The Boeing Company (BA) is expected to report Q4 earnings on Wednesday, January 30 before the market open with a conference call scheduled for 10:30 am ET. Boeing is a diversified aerospace company... EXPECTATIONS: Analysts are looking for EPS of $1.19 on revenue of $22.36B, according to First Call. The consensus range for EPS is $1.02-$1.28 on revenue of $21.14B-$23.17B... LAST QUARTER: Boeing reported Q3 EPS of $1.35 against estimates for $1.12 on revenue of $20.01B against estimates for $20.03B. On its Q3 earnings report, the company raised its FY12 EPS and revenue guidance. The FY12 EPS view was raised to $4.80-$4.95 from $4.40-$4.60, consensus $4.73. The FY12 revenue forecast was increased to $80.5B-$82B from $79.5B-$81.5B, consensus $80.65B. FY12 cash flow was also seen greater than $5.5B, up from prior guidance of greater than $5B. On the company’s Q3 conference call, management said passenger traffic "remained resilient," and a "dramatic replacement cycle for commercial planes" was being witnessed. Overall, the company said the defense markets were expected to trend with the threat of budget cuts... STREET RESEARCH: Street research has been mixed in the weeks leading up to Boeing’s Q4 earnings report. The recent weakness in the shares was seen as a buying opportunity by several firms including Sterne Agee, Wells Fargo, and Argus. Conversely, Boeing was downgraded by BB&T and Goldman Sachs on January 8 and January 16, respectively. Regarding the recent grounding of 787 Dreamliner, the worst case scenario was seen as a $5B write off, according to Howard Rubel, a Jefferies & Co. analyst... PRICE ACTION: Boeing’s shares have traded in a choppy pattern since Q3’s results were released in late October, and currently sit at approximately the same level as they did three months ago. In early afternoon trading ahead of Wednesday's Q4 report, Boeing’s shares are down about 0.70%.

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