Aerospace and defense giant Boeing Co. (BA) is scheduled to announce its fourth-quarter results before the market opens Wednesday. Analysts polled by Thomson Reuters, on average, expect a profit of $1.36 per share on revenues of $17.57 billion for the quarter. In the year-ago fourth quarter, the group posted a loss of $0.08 per share on revenues of $12.68 billion.
Soft demand for air travel and freight services has reduced airlines' purchases of new aircraft leading to a decline in orders as well as cancellations. This, in turn, has negatively impacted the revenues of aircraft makers. In addition to the downturn in the economy, Boeing has its own problems. The company's much-awaited, fuel efficient Dreamliner has faced several production glitches and is running behind schedule.
In October, Boeing has lowered its earnings outlook for fiscal 2009 to reflect the charges related to the 787 and 747 programs. The company now forecasts earnings in the range of $1.35-$1.55 per share for the full-year 2009, much lower than its prior outlook range of $4.70-$5.00 per share. The company's full-year revenue forecast range remains at $68 billion-$69 billion. Analysts expect the company to report earnings of $1.44 per share on revenues of $68.08 billion for the year.
Boeing Commercial Airplanes or BCA's 2009 delivery guidance remains at between 480 and 485 airplanes. BCA's 2009 revenue outlook is between $34 billion and $35 billion, while operating margin is now expected to be between minus 3% and minus 2.5% due to the 787 and 747 impacts.
Boeing Integrated Defense Systems, or IDS, revenue guidance for 2009 remains at between $33 billion and $34 billion and operating margins of about 10%.
Further, Boeing said in October last year that Boeing Capital Corp.'s aircraft finance portfolio is expected to be stable as the amount of new aircraft financing in 2009 will approximate normal portfolio runoff due to customer payments and depreciation. Earlier, the aircraft finance portfolio was expected to increase modestly as the amount of new aircraft financing in 2009 was forecast to exceed normal portfolio runoff due to customer payments and depreciation.
Boeing has a 2009 R&D forecast range of $6.6 billion - $6.8 billion, which would reflect 787 cost reclassification, an operating model adjustment to better balance BCA R&D efforts, and higher IDS R&D. Capital expenditures for the year are projected to be about $1.3 billion.
For the preceding third quarter, Boeing reported a net loss, hurt by charges for delays to the company's 747-8 Freighter and the 787 Dreamliner programs. Boeing reported a net loss of $1.56 billion, or $2.23 per share, compared to net earnings of $695 million, or $0.96 per share, last year. However, total revenues grew 9% to $16.69 billion from $15.29 billion in the prior-year quarter.
Sales of products increased to $13.97 million in the third quarter from $12.41 million in the year-ago period, while sales of services declined to $2.72 million from $2.89 million a year ago.
Boeing's 787 Dreamliner was originally scheduled to enter service in May 2008, but production had been delayed multiple times. In August 2009, the company pushed back the scheduled service entry date to the fourth quarter of 2010. The aircraft's maiden flight, originally planned for September 2007, took place on December 15, 2009.
Among peers, Lockheed Martin Corp. (LMT) is slated to announce its fourth-quarter results on January 28. Wall Street analysts forecast earnings of $1.99 per share for the quarter on revenues of $12.47 billion.
In early January, Lockheed Martin announced the formation of a new Mission Systems & Sensors business unit, realigning two of its prior standalone businesses in Electronic Systems, the former Maritime Systems & Sensors and Systems Integration - Owego. As a result of the integration, the company expects to eliminate about 1,200 U.S. positions from the business.
Another rival, Northrop Grumman Corp.'s (NOC) fourth-quarter results are set to be released on February 4. Analysts are of the view that the company will earn $1.26 per share for the quarter with revenue estimate of $9.00 billion.
BA closed Tuesday's trading at $57.71, down $0.07, on a volume of 4.55 million shares. For the 52-week period, the company's shares traded in a range of $29.05 - $62.31.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.