Quarterly Synopsis: Boeing's fourth-quarter net income decreased 8% to $1.2 billion and earnings per share dropped 11% to $1.56. GAAP profit figures were cushioned by one-time gains, including a 50 cent per share tax settlement. Earnings from operations fell a dismaying 35% to $1.1 billion. Revenue dropped 8%, beneath $17 billion. The operating margin narrowed from 9.4% to 6.7%, signaling weaker pricing and higher relative expenses. Despite the poor quarter, management is optimistic about 2011, forecasting earnings between $3.80 and $4.00, lending its stock a forward earnings multiple of 18, a sizable premium to aerospace and defense peers.
Earnings Performance: Boeing delivered adjusted earnings of $1.11, matching analysts' consensus target. The company has an average earnings beat rate of 2.3%. It exceeded expectations in the four previous quarters. Boeing's top-line missed the consensus by 2.9%, hurting the perception of its quarterly report. The company has an average sales miss rate of 0.9%, but exceeded expectations marginally in the previous quarter. The stock fell as much as 3.2% in reaction to the report. It has advanced 21% in 12 months and 1.6% in six months.
Dividend Information: Boeing pays a quarterly dividend of 42 cents, translating to an annual yield of 2.4%. The company has kept its distribution steady in the past 12 months, but boosted it 6.3% and 11% annually, on average, over three- and five-year spans, respectively.Analyst Opinions: Of analysts covering Boeing, 20, or two thirds, rate its stock "buy", eight rate it "hold" and two rank it "sell." The stock has a median 12-month target of $83.43. Credit Suisse, Outperform, $91 Target
Citigroup, Buy, $85 Target
Goldman Sachs, Buy, $85 Target
Deutsche Bank, Buy, $83 Target
JPMorgan, Overweight, $83 Target
Barclays, Outperform, $80 Target
UBS, Neutral, $72 Target