Missing The Point On Boeing (BA)

Boeing released earnings today, and they were not so hot. The stock got knocked down 3% to just north of $81.

Investors did not like the fact that net income fell 31% to $694 million. Part of this was due to a write-off of the company's airplane broadband unit. The company also saw earnings from its defense unit drop.

Wall St. is not giving enough weight to the company's commercial aircraft success. Revenue at that unit rose 45% to $6.7 billion.

Boeing is flogging Airbus, and that is likely to continue with the success of Boeing's Dreamliner and the delays in the Airbus 380 super-jumbo. These delays, now nearly two years beyond plan, are likely to help Boeing sell the new version of its 747, and old plane that is being upgraded for more passenger seats.

The market seems to underestimate how much trouble Airbus is in. Boeing's stock has dropped from its 52-week high of $89.58 to $81.23, where it trades today.

Boeing's share of the commercial airplane market is going to grow more than most investors expect. Good news. But, not travelling fast.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does own securities in companies he writes about.