The Boeing Company (NYSE: BA) – Q1 FY 2011 Earnings Preview
Tuesday, April 26, 2022 4:06 PM

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The world's largest aerospace and defense company, Boeing Co. (NYSE: BA), is expected to report its first quarter earnings on April 27, 2011. In the last four quarters, the company's reported EPS exceeded analysts' consensus estimates in the first three quarters by margins of 11.10 percent, 5 percent, and 5.70 percent. For the quarter ended December 2010, the company's reported EPS met analysts' consensus estimate.

For the first quarter, analysts' EPS estimates range from a low of $0.60 to a high of $0.92 per share, compared with a consensus estimate of $0.70 per share to $0.72 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $14.54 billion to a high of $16.35 billion, compared with a consensus estimate of $15.22 billion to $15.25 billion in the same quarter a year ago. For the quarter ended March, 2011, the consensus EPS forecast has been reduced from $0.73 per share estimated 30 days ago to $0.72 per share.

In the last 52 weeks, Boeing's stock has been trading in the range of $59.48 to $76. The last trading price of the stock was $72.30 on April 14, 2011. During the first quarter, analysts' at Argus downgraded the stock rating to hold from buy.

Boeing is a global aerospace and defense giant that conducts business through three operating segments. Boeing Commercial Airplanes and EADS's Airbus division are the world's only makers of 150-plus seat passenger jets. Boeing Defense, Space & Security is the world's third largest military contractor behind Lockheed Martin Corp and England's BAE Systems. Boeing Capital Corp. primarily finances Boeing aircraft for airlines.

In the last quarter, the company reported net income of $1.1 billion and earnings of $1.56 per share, representing a decrease of 8 percent and 11 percent, respectively. That compares with net income of $1.26 billion and earnings of $1.75 per share reported for the same period in fiscal 2009. Total revenue for the quarter was $16.5 billion, down 8 percent from $17.9 billion in the same quarter FY 2009. For full year 2010, total revenue was $64.3 billion, down 6 percent, compared with revenue of $68.2 billion in FY 2009. Net income for the year was $3.3 billion and earnings were $4.45 per share, up 152 percent and 142 percent, compared with net income of $1.3 billion and earnings of $1.84 reported for FY 2009.

During the first quarter FY 2011, Boeing received a contract from the U.S. Air Force to build the next-generation aerial refueling tanker aircraft that will replace 179 of the service's 400 KC-135 tankers. The contract calls for Boeing to design, develop, manufacture and deliver 18 initial combat-ready tankers by 2017. The entire deal is valued at $35 billion.

In its regular update, Boeing released its revenue and earnings guidance for FY 2011. Boeing expects revenue to be in the range of $68 billion to $71 billion. Earnings guidance for 2011 is established at between $3.80 and $4.00 per share.

For the first quarter, Boeing's board of directors declared a regular quarterly dividend of $0.42 per share, which was paid on March 4, 2011, to shareholders of record on February 11, 2011. During FY 2010, the company did not repurchased ay of its shares under its share repurchase program.

In the aerospace/defense products and services industry, Boeing competes with companies such as Lockheed Martin Corp. (NYSE: LMT) and Northrop Grumman Corp. (NYSE: NOC). In the last one year, LMT reported earnings of $7.94 per share on revenue of $45.8 billion, with quarterly revenue growth of 4.80 percent. NOC reported earnings of $6.82 per share on revenue of $34.76 billion, with quarterly revenue growth of negative 3.60 percent. On the other hand, Boeing reported earnings of $4.46 billion on revenue of $64.31 billion, with quarterly revenue growth of negative 7.70 percent.

The Boeing Company has a total market capitalization of $53.23 billion. The company has a P/E ratio of 16.23, lower than the industry's average P/E of 17.90. The P/B and P/S ratio of the company is 19.530 and 0.83, respectively, compared with the  industry's P/B and P/S ratio of (25.69) and 0.92, respectively. The net profit margin of the company is 7.03 percent, higher than industry's average margin of 6.40 percent. The ROE of the company is 130.18 percent, more than five times,that of the industry's ROE of 24.80 percent.

 

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