The Boeing Company (NYSE:BA) announced third quarter earnings of $1.44 which came in 20 cents better than estimates, according to an 8-K filing with the SEC. Shares moved down, however, on news that the aerospace company's 787 delivery schedule was being pushed back yet again due to parts shortages and production problems.

The aerospace company also revised its 2007 guidance up from $4.95 to $5.15. The improvement came from core business improvements and lower corporate costs. These improvements are also expected to positively impact future quarters and offset the change in delivery schedule. 

"Our focus on growth and productivity is driving strong financial performance across our company," said Boeing Chairman, President and CEO Jim McNerney. "With our record backlog and healthy, growing markets, the tasks at hand are to execute our programs, continue expanding our business base, and become more efficient every day."

Meanwhile, the Airbus vs. Boeing rivalry recently extended into airforce contracts. A key $40 billion contract for a tanker aircraft is up in the air amid a WTO dispute about aerospace subsidies. Airbus products are increasingly in demand by the U.S. government as alternatives to an increasingly limited pool of U.S. aircraft designs.

Overall, Boeings earnings cast additional doubt on the company's ability to carry forward with the 787 delivery schedule without further delays. However, the company has reduced its costs which led to an earnings surprise this quarter and should keep the net about even in the next. Combined, these factors make BA a stock worth watching!

Related Companies
Lockheed Martin Corporation (LMT)
Raytheon Company (RTN)
United Industrial Corp. (UIC)