Updated from 7:49 a.m. EST

Boeing ( BA) blew away Wall Street's estimates for the fourth quarter, and the jetmaker was decidedly upbeat on this year and 2008.

Quarterly revenue surged 26% year over year to $17.5 billion, exceeding estimates by $1 billion. Fourth-quarter net income was $989 million, equal to $1.29 a share, or $1.16 excluding items. Analysts expected an adjusted profit of only 98 cents.

Boeing shares surged Wednesday, gaining $3.78, or 4.4%, to $89.78.

For 2007, Boeing said it should earn $4.55 to $4.75 a share, ahead of its prior forecast of $4.45 to $4.65. Analysts are at the high end, expecting $4.75 on average. About 20% of those earnings should come in the first quarter, when aircraft delivery totals will be similar to the fourth quarter, said CFO James Bell during a conference call.

This year's revenue should be $64.5 billion to $65 billion. Again, analysts are being optimistic, projecting nearly $66 billion.

Next year, Boeing expects to earn $5.55 to $5.75, a bit below estimates of $5.79, on revenue of $71 billion to $72 billion. "We are truly raising the bar here at Boeing," said CEO Jim McNerney, during the call.

McNerney assured analysts that the 787 Dreamliner will be delivered as scheduled in May 2008. He said Boeing had activated four of the eight contingency plans it had prepared to assure on-time production, but the cost has been minimal. The plans involve making various parts in Washington if the need arises.

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