EARNINGS FORECAST: Net profit for the quarter of $1.76 a share is the consensus of analysts, according to FactSet, compared with $1.28 a year prior. Analysts tend to focus on Boeing’s “core” earnings, which exclude parts of its pension expenses driven by market volatility. Consensus expectations are for core earnings of $1.80 a share, compared with $1.76 a year ago.
DREAMLINER COSTS: Boeing’s flagship 787 Dreamliner is now flying off assembly lines at a faster pace than any other twin-aisle jet in its history — 10 each month. Analysts are watching for indications of whether the company’s cost-reduction will face additional disruption with unit costs continuing to exceed the sale price. The company in 4Q blew past $26 billion in combined per unit production losses — forecast to top out around $25 billion — and expected to climb still higher through 2015. Boeing maintains it will break even and begin generating positive cash in 2016. Boeing says the program is profitable, based on its accounting method, which spreads costs and revenue for the 787 over many years.
TANKER PROGRESS: The U.S Air Force doesn’t expect Boeing to fly a fully kitted-out version of the KC-46 until July, another in a series of creeping delays leaving precious little testing time before a decision on moving to production in October. Analysts are watching for additional charges as the company directs more resources — including staff from its commercial jet unit — to try and keep the $49 billion project on track. Further delays are unlikely to help Boeing’s bid alongside Lockheed Martin Corp.LMT +1.02% to win the $90 billion Long-Range Strike Bomber contract.
MUSICAL CHAIRS: Even with Boeing’s record output, not all parts of the aerospace industry’s vast supply chain have been able to keep up. Seat suppliers have lagged, leaving the Chicago-based plane maker and Airbus Group NVEADSY +0.90%, its European arch rival, to stall delivery to carriers like American Airlines Group Inc.AAL +3.26% as complex business class seats are in short supply. Investors and analysts will be looking for signs the seat shortage will dent its output forecast as customers are left standing.
