Boeing Earnings Around the Corner

S&P 500 (NYSE:SPY) component Boeing (NYSE:BA) will unveil its latest earnings on Wednesday, 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.

Boeing Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.12 per share, a decline of 23.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.10. Between one and three months ago, the average estimate moved up. It has risen from $1.11 during the last month. For the year, analysts are projecting net income of $4.71 per share, a decline of 1.9% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 16 cents, reporting profit of $1.27 per share against a mean estimate of net income of $1.11 per share.

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Wall St. Revenue Expectations: Analysts predict a rise of 13% in revenue from the year-earlier quarter to $20.03 billion.

Stock Price Performance: From September 20, 2012 to October 18, 2012, the stock price rose $4.41 (6.3%), from $69.85 to $74.26. The stock price saw one of its best stretches over the last year between October 10, 2012 and October 18, 2012, when shares rose for seven straight days, increasing 5.6% (+$3.92) over that span. It saw one of its worst periods between May 7, 2012 and May 18, 2012 when shares fell for 10 straight days, dropping 9% (-$6.81) over that span.

A Look Back: In the second quarter, profit rose 2.8% to $967 million ($1.27 a share) from $941 million ($1.25 a share) the year earlier, exceeding analyst expectations. Revenue rose 20.9% to $20 billion from $16.54 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 19.7% in the fourth quarter of the last fiscal year and 57.5% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.5% in the third quarter of the last fiscal year, 18.2% in the fourth quarter of the last fiscal year and 30% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With 19 analysts rating the stock a buy, one rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.22 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.21 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 2.9% to $51.61 billion while liabilities rose by 2.8% to $42.45 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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