Boeing Net up 29%

Elena
26 Apr, 2006
New York City

Boeing reported Q1 net income rise of $692 million or 88 cents per share, beatung analyst estimates of 76 cents per share. However, shares of Boeing fell 1.5% in pre-market trading, as the company reported quarterly revenue below analyst estimates.

[R]9:00 AM Stock futures indicated a positive market opening.[/R]
U.S. stock futures indicated a slightly higher start of Wednesday session on strong earnings reports, generating optimism about the economy. At the same time investors digested much stronger-than-expected data on durable-goods orders, remaining cautious ahead of other economic reports later in the day. In earnings news, Boeing ((BA)) said Q1 profit rose sharply by 29% on higher sales of its commercial planes and military equipment, but revenue missed analysts' forecast. The company posted profit rise to $692 million or 88 cents per share, beating analyst estimates of 76 cents per share and revenue growth of 12% to $14.3 billion, below estimates of $14.5 billion. Boeing shares fell 1.5% in pre-market trading. Colgate-Palmolive Co. ((CL)) posted a higher Q1 profit as volume growth helped offset restructuring costs and higher spending on advertising. Shares of Amazon.com Inc. ((AMZN)) rose 1%, following a release of 20% rise in quarterly sales and a full-year outlook in line with estimates, but 34% profit drop in Q1. S&P 500 futures were up 1.60 points, above fair value. Dow Jones industrial average futures were up 9 points and Nasdaq 100 futures were up 1.50 points.

[R]Growth in durable goods orders exceeded expectations.[/R]
Wednesday morning, the Department of Commerce released its report on durable goods orders in the month of March, showing that orders rose much more than economists had expected. The data may add to recent concerns about higher interest rates.The report said that durable goods orders rose 6.1 percent in March following an upwardly revised 3.4 percent increase in February. Economists expected orders to increase by a much more modest 1.7 percent compared to the 2.7 percent growth originally reported for February. The growth in durable goods orders was due in large part to a significant increase in orders for transportation equipment, which reflected a 71.1 percent increase in orders for commercial aircraft. Excluding transportation, orders rose by a more modest 2.8 percent in March. Outside of the technology sector, significant growth in orders for machinery and computers and electronic products contributed to the overall increase in orders. The report also showed that shipments of durable goods rose 0.3 percent in March following a 0.4 percent increase in February. At the same time, inventories of durable goods rose 0.7 in March after falling 0.4 percent in February.

Crude oil prices slightly gained ahead of weekly petroleum report. Light sweet crude June delivery rose 10 cents to $72.98 a barrel. Gasoline futures rose to $2.1350 a gallon, while heating oil fell marginally to $2.0540. Natural gas gained 3 cents to $7.287 per 1,000 cubic feet. London Brent added 21 cents to $73.42.European gold advanced. In London gold rose to $630.75 per troy ounce from $629.60. In Zurich the precious metal rose to $630.95 from $629.65. In Hong Kong gold rose $5 to close at $631.60. Silver opened unchanged at $12.40. The U.S. dollar advanced vs. major currencies. The euro traded at $1.2416, down from $1.2424. The dollar bought 115.11 yen, up from 114.78. The British pound was quoted at $1.7836, down from $1.7881.

American Tower Corp, ((AMT)), owner, operator and developer of broadcast-and-wireless-communications, reported that it narrowed Q1 loss to 1 cent a share, up from a loss of 14 cents a share in the year-ago period on 74% higher revenue. The company expects Q2 profit from continuing operations of $1 million to $3 million on revenue of $317 million to $322 million.

Engelhard Corp, ((EC)), chemicals firm, reported Q1 net income advanced 19% to 55 cents a share on 43% revenue growth, beating analysts’ forecasts for earnings of 52 cents a share.

Potash Corp, ((POT)), fertilizer company, reported Q1 net income fell to $125.5 million from $131.3 million a year ago, while earnings per share advanced to $1.19 from $1.15, as a result of the value of a reduced share base following the repurchase of 9.5 million shares in 2005. Sales dropped 7% to $861 million on lower volumes. Offshore volumes declined 48%.

Harleysville Group Inc, ((HGIC)), property and casualty insurer, reported Q1 net income of 70 cents a share, up from 39 cents in the year-ago period. The cumulative effect of an accounting change for share-based payments added 3 cents to per-share net earnings for Q1, and operating earnings came to 62 cents a share. Quarterly revenue amounted to $239.5 million from $232.7 million. The company beat analysts’ expectations for earnings of 55 cents a share.

Monster Worldwide, ((MNST)), online recruitment company, reported Q1 net income more than doubled to 32 cents a share on 28% revenue growth.The company earned 29 cents a share from continuing operations, beating analyst forecasts of 27 cents a share.


[R]8:15AM European averages traded higher at mid-day.[/R]
European markets posted gains at mid-day, boosted by strength in the tech sector. The leading gainers were chipmakers Infineon Technologies and STMicroelectronics. Infineon Technologies rose 2.3% after it reported narrower Q2 loss to 26 million euros from 114 million euros last year on 24% revenue growth. Automotive shares like Renault and Peugeot also provided support to the market sentiment. The German DAX 30 added 0.2%, the French CAC 40 rose 0.3%, and London FTSE 100 climbed 0.4%.


[R]7:45AM Asia finished in the positive.[/R]
Asian-Pacific benchmarks advanced across the region, lifted by improved global consumption outlook, following a rebound in oil prices and strong U.S. consumer confidence report. The Nikkei crossed the 17,000-key level for the first time in three days to rise 0.5% to 17055.30. The Japanese index was boosted by industrial and consumer-oriented stocks. Tech shares also gained on improved earnings estimates. Nikon jumped 8.5% on news that it would exceed its 2005 profit by 25%. Among other gainers, Canon rose 1.2% and Advantest gained 0.7%. South Korea’s Kospi surged to 1.4%, strongly supported by financial stocks, led by Kookmin Bank, up 2.8%. Australia’s All Ordinaries reached a historic high of 1.1%. Hong Kong’s Hang Seng added 0.6% on strong blue chips. Taiwan Weighted index climbed 0.5% to a five-year peak on blue-chip shares.