Wednesday, January 26, 2011

Boeing (NYSE:BA) Drops on Disappointing Revenue, Guidance

Boeing (NYSE:BA) met the expectations of most analysts in the latest quarter, but disappointed in revenue and their guidance, causing shares of the company to drop after their report.

Net income for the fourth quarter dropped to $1.16 billion, or $1.56 a share, falling from the $1.27 billion, or $1.75 a share in the same quarter last year.

Revenue fell to $16.55 billion, down from $18 billion in the fourth quarter of 2009.

Excluding one-time items, earnings were at $1.11 a share.

For fiscal 2010, net income came in at $3.3 billion, or $4.45 a share, on revenue of $64.3 billion. Net income in the fourth quarter of 2009 was $1.3 billion, or $1.84 a share, on revenue of $64.7 billion.

Guidance is what is weighing on the company today, as earnings for 2011 were estimated in a range of $3.80 to $4.00, far lower than expected.

Boeing said a pension contribution, weak defense environment, and their ongoing 787 issues were the reasoning behind the low guidance.

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