Boeing Co., a huge defense contractor and maker of commercial aircraft, reports third-quarter results before the stock market opens on Wednesday.
WHAT TO WATCH FOR: Plenty. When can they deliver the new 787? The new 747-8? How much will Pentagon austerity hurt the defense business?
Boeing has already pushed back delivery of the first 787 to the middle of the first quarter. Investors will be listening for any further updates, as well as details about the impact of the delay on Boeing's bottom line. Last month it also pushed back delivery of the new cargo version of its 747 into the middle of next year.
Boeing is making 787s in anticipation of delivering them, as it awaits certification from the Federal Aviation Administration. UBS analyst David E. Strauss has been monitoring flights of the modified 747s Boeing uses to haul around big 787 components such as the wings. There were more of those flights in September than the two previous months, but still fewer than usual, he wrote in an Oct. 4 note.
WHY IT MATTERS: Boeing is raising production rates for its workhorse 737, the smaller commercial jet that it sells more of than any other plane. It also plans to make its bigger — and more expensive — 777s and 747s faster. Those are major pieces of good news, as long as projected demand materializes. The financial benefits won't be there if the 787 and new 747-8 aren't delivered, too.
WHAT'S EXPECTED: Analysts polled by Thomson Reuters expect Boeing to earn $1.05 per share on revenue of $16.72 billion.
LAST YEAR'S QUARTER: Boeing reported a loss of $1.56 billion, or $2.23 per share, with charges of more than $3.6 billion for delays on the 787 and 747-8.
