Monday, October 19, 2009
Rich Smith :: Townhall.com Columnist
Foolish Forecast: It's Time to Wow Us,
by Rich Smith
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Someone remind me: What is it you're supposed to do in case of a crash landing? Duck and cover? Stop, drop, and roll? Whatever calisthenics you practice, I doubt they'll make Boeing 's(NYSE: BA) Q3 earnings report (due out Wednesday) look any better. But at least you can be prepared.

What analysts say:

Buy, sell, or waffle? Thirty-five analysts keep Boeing on their radar, but don't think that makes it a "popular" stock. Only six of 'em rate Boeing a buy, while 25 say it's just a hold, and four think it's time to sell. Revenue. Yet the numbers aren't all bad. Analysts predict 12.4% sales growth to $17.2 billion. Earnings. They predict a reversal of last year's profits, for a $2.12-per-share loss.

What management says:
Give Boeing this much -- its press department is no wallflower. Hardly a week goes by without Boeing making news in one way or another. In recent weeks, we've seen the restart of last year's KC-X contestbetween Boeing and Northrop Grumman (NYSE: NOC), congressional wrangling over the C-17 transport, and a series of delivery delays in high-profile airliners like the 747-8 freighterand the 787 Dreamliner.

What management does:
Yet from a numerical perspective, we also saw Boeing begin a turnaround in the second quarter. Across the board, gross, operating, and net margins, all of which had seemingly been in freefall, ticked up in Q2:

Margins

March 2008

June 2008

September 2008

December 2008

March 2009

June 2009

Gross

19.8%

19.2%

18.7%

17.3%

16.2%

16.6%

Operating

9.1%

8.7%

8.2%

6.1%

4.8% Continued...

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About The Author

Rich Smith is a business writer with the Motley Fool.

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