Remember four, five years ago when everything that could go wrong did go wrong for Boeing (NYSE: BA)? The company not only lost market share to Airbus SAS but ousted its CEO, Phil Condit, and his successor, Harry Stonecipher, for among other things having affairs with subordinates. Former CFO Michael Sears was sent to prison for his role in one of many Pentagon scandals involving the company.

Under Chief Executive James McNerney, who joined the plane maker from 3M Co. (NYSE: MMM) in 2005, Boeing has managed to put its problems behind it. The company reported net income of $1.11 billion, or $1.44 a share on revenue of $16.5 billion, beating Wall Street expectations. Boeing also raised earnings, revenue and cash flow guidance for the year. It trimmed back its forecasts for 2008, but that's to be expected given the delays in the 787 Dreamliner and the slowdown in the defense business.

Shares of the Chicago-based company are up about 6% this year, underperforming peers Lockheed Martin (NYSE: LMT), General Dynamics (NYSE: GD) and Raytheon (NYSE: RTN) mainly because of worries about the Dreamliner. This reaction is overblown. First of all, the fact that new, sophisticated aircraft has been delayed is hardly surprising. If the delays continue however, that's more serious. For now, Boeing's customers haven't lost faith, placing 710 firm orders.

If the Dreamliner stays on track and the company gets its fair share of defense spending, the shares may head higher.

Visit AOL Money & Finance for more earnings coverage