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BA: Q3 EPS 89c vs $1.26 Beats 63c Est; Guidance Varies from Consensus

Wednesday, October 25, 2006 07:37 ET

QUARTER RESULTS
The Boeing Company (BA) reported Q3 results ended September 2006. Q3 Revenues were $14,739.00M; +19.30% vs yr-ago; MISSING revenue consensus by -1.69%. Q3 EPS was 89c; -29.37% vs yr-ago; BEATING earnings consensus by +41.27%. Adjusted Q3 EPS was $1.11.

Q3 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $14,739.00M $12,355.00M +19.30% $14,992.19M -1.69%
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EPS: 89c $1.26 -29.37% 63c +41.27%
Adj EPS: $1.11 N/A N/A N/A N/A
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GUIDANCE

FY-06 Revenue Outlook : Boeing's revenue guidance for 2006 is increased to approximately $60.5 billion. The FY-06 revenue forecast is in-line with current consensus estimates.

FY-06 Earnings Outlook [$2.40 - $2.50]: Earnings per share guidance for 2006 is revised to between $2.40 and $2.50 due to charges totaling $0.25 per share for Connexion that are mostly offset by company wide performance improvements totaling $0.20 per share. The FY-06 earnings forecast is above current consensus estimates.


ADDITIONAL COMMENTARY:
Special items that affected core operating results include the previously disclosed $0.22 per share charge this quarter to exit the Connexion business, and benefits totaling $0.93 per share a year ago for tax settlements and asset sales. Adjusting for these items, third-quarter adjusted earnings per share* was $1.11 compared to $0.33 for the same period last year. The year-ago figure was not adjusted for the impact of a labor strike, which reduced earnings in that period by an estimated $0.25 to $0.30 per share. Revenue guidance for 2007 is increased to between $65.5 billion and $66.0 billion due to the Aviall acquisition offset somewhat by lower revenue growth than planned at IDS. Boeing is raising its 2007 EPS guidance $0.20 per share to between $4.45 and $4.65 due to the absence of further investment in Connexion, contributions from Aviall, and additional productivity improvements. Operating cash flow guidance is unchanged at greater than $5.5 billion for both 2006 and 2007.


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