Boeing Backlog More Impressive Than Guidance (BA)

Boeing Co. (NYSE: BA) posted earnings of $1.36 EPS on $17.5 Billion in revenues for its fourth quarter.  Estimates from First Call were $1.32 EPS and $17.33 Billion in revenues.  Boeing is also making "raised guidance projections" for 2008 with EPS in a range of $5.70 to $5.85, while First Call estimates were $5.95 on last look.  The aerospace and defense giant noted that its raised guidance came from productivity gains being realized ahead of earlier plans.

As far as the 787 Dreamliner, it doesn’t look like any real changes are any different than from earlier this month.  It now expects the first flight to occur around the end of the second quarter of 2008 and the first delivery in early 2009. The Dreamliner program won a record 369 orders in 2007 for the 787, bringing total firm orders since launch to 857 airplanes from some 56 customers.

This backlog makes IBM’s $100+ Billion look like chopped liver.  Boeing’s stated backlog is $327 Billion, or roughly 5-years worth of 2007 revenues.  Boeing spent $890 million for some 9.4 million shares in the fourth quarter as part of its expanded share buyback plan.

As this guidance for 2008 is under plan, Boeing shares are initially indicated down 1.4% at $79.79 in pre-market trading.  The 52-week trading range is $74.12 to $107.83.

Jon C. Ogg
January 30, 2008