Boeing (BA - commentary - Cramer's Take) the commercial and defense aviation manufacturer is scheduled to report third quarter 2008 results before Wednesday's market open, and will conduct its quarterly conference call later that morning.
BA is expected to earn 98 cents on revenues of $14.61 billion. In the year-ago quarter, BA earned $1.43 on revenues of $14.61. Last quarter, the company missed estimates by 7 cents. I concluded that conference call by noting that BA will be an event-driven stock.
Unfortunately, the only events occurring for BA have been to the company's detriment. BA's struggles to deliver the 787 Dreamliner have been further exacerbated by a prolonged strike. To add insult to injury, there is a high likelihood that an Obama presidency could cut defense spending, thus impacting future guidance.
There is not much we can expect of a positive nature when BA reports, other than the mention of some small commercial orders. Whereas BA reaffirmed its 2008 and 2009 guidance on the last conference call, I think that shareholders should be braced for downward revisions to management's estimates going forward.
P.S. Will you be there when Cramer makes his next move?
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Investing Sifting Through the Good and the Bad 10/21/2008 11:52 AM EDT For long-term value investors, it is time to start looking, cautiously, at some longs.
At the time of publication, Rothbort had no positions in the stocks mentioned, although positions can change at any time.
Scott Rothbort has over 20 years of experience in the financial services industry. In 2002, Rothbort founded LakeView Asset Management, LLC, a registered investment advisor based in Millburn, N.J., which offers customized individually managed separate accounts, including proprietary long/short strategies to its high net worth clientele. He also is the founder and manager of the social networking educational Web site TheFinanceProfessor.com.
Immediately prior to that, Rothbort worked at Merrill Lynch for 10 years, where he was instrumental in building the global equity derivative business and managed the global equity swap business from its inception. Rothbort previously held international assignments in Tokyo, Hong Kong and London while working for Morgan Stanley and County NatWest Securities.
Rothbort holds an MBA in finance and international business from the Stern School of Business of New York University and a BS in economics and accounting from the Wharton School of Business of the University of Pennsylvania. He is a Term Professor of Finance and the Chief Market Strategist for the Stillman School of Business of Seton Hall University.
For more information about Scott Rothbort and LakeView Asset Management, LLC, visit the company's Web site at www.lakeviewasset.com. Scott appreciates your feedback; click here to send him an email.
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