Boeing and Textron Shares Dip Lower After Earnings Releases

The Boeing Company (NYSE:BA) reported net income above Wall Street’s expectations for the fourth quarter. Net income for the aerospace/defense products and services company rose to $1.39 billion ($1.84 per share) vs. $1.16 billion ($1.56 per share) in the same quarter a year earlier. This marks a rise of 19.7% from the year earlier quarter. Revenue rose 18.2% to $19.55 billion from the year earlier quarter. BA beat the mean analyst estimate of $1.02 per share. Analysts were expecting revenue of $19.4 billion.

“Strong fourth-quarter operating performance, record revenue and backlog, and expanded earnings and cash flow capped a year of substantial progress for Boeing in 2011,” said Jim McNerney, Boeing chairman, president, and chief executive officer. “Major accomplishments of our team during the year included certifying and delivering the first 787s and 747-8s, winning the U.S. Air Force Tanker program, launching the 737 MAX, and securing both an important U.S. missile defense contract and a key agreement for F-15s to Saudi Arabia.”

Competitors to Watch: Lockheed Martin Corp. (NYSE:LMT), Embraer SA (NYSE:ERJ), Raytheon Company (NYSE:RTN), Northrop Grumman Corp. (NYSE:NOC), Honeywell Intl. Inc. (NYSE:HON), Spirit AeroSystems Hldgs., Inc. (NYSE:SPR), General Dynamics Corp. (NYSE:GD), Orbital Sciences Corp. (NYSE:ORB), Alliant Techsystems Inc. (NYSE:ATK), and Rockwell Collins, Inc. (NYSE:COL).

Textron Inc (NYSE:TXT) reported its results for the fourth quarter. Reported a loss of $19 million (7 cents per diluted share) in the quarter. The conglomerate had net income of $60 million or 19 cents per share in the year earlier quarter. Revenue rose 4.1% to $3.25 billion from the year earlier quarter. TXT reported adjusted net income of 49 cents per share. By that measure, the company beat the mean estimate of 34 cents per share. Analysts were expecting revenue of $3.24 billion.

“Fourth quarter operating results reflected outstanding performance at Bell, continued improvement at Cessna, good performance in our Industrial segment, and actions we’re taking to strengthen our competitive position at Systems in a difficult defense environment,” said Textron Chairman and CEO Scott C. Donnelly.

Competitors to Watch: The Boeing Company (NYSE:BA), General Electric Company (NYSE:GE), Embraer SA (NYSE:ERJ), 3M Company (NYSE:MMM), Spirit AeroSystems Hldgs., Inc. (NYSE:SPR), Honeywell Intl. Inc. (NYSE:HON), Tyco International Ltd. (NYSE:TYC), Carlisle Companies, Inc. (NYSE:CSL), United Technologies Corp. (NYSE:UTX), and Siemens AG (NYSE:SI).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com