Boeing Co. (NYSE: BA), whose shares have been battered by concerns about delays in the 787 Dreamliner, today reported better-than-expected earnings.

Profit rose to $1.21 billion, or $1.61 a share, from $873 million, or $1.12, a year earlier, the company said in its earnings release (pdf). Sales gained 4.1% to $16 billion. Analysts had expected earnings of $1.35 on revenue of $16.52 billion, according to Thomson Financial.

"We're off to a good start in what we expect to be another strong year of financial performance for Boeing," said Chairman, President and Chief Executive Officer Jim McNerney in the release. "We are methodically working through our challenges, including the start-up of the 787, and our people remain focused on satisfying our customers and leveraging growth and productivity into better bottom-line and top-line performance for our
company."

Backlog at the quarter was $346 billion, up 32% year-over-year, driven by orders for commercial airplanes at the V-22. Investors responded positively to the news, sending the shares up in premarket trading. The company also reaffirmed its guidance of $5.70 to $5.85 this year and gave guidance of $6.80 to $7 per share for 2009. Analysts expected profit of $5.93 this year and $6.87 for next year.

This goes to show you that yesterday's dogs become today's heroes on Wall Street. Anything remains possible in today's market where conventional wisdom regularly is proven wrong.

Boeing Co. (NYSE:BA) reported its best quarter in a long time. Net income was $989 million, or $1.29 per share, compared with $460 million, or 58 cents per share, a year earlier. Excluding some items, profit was $1.16. On that basis, it was expected to earn 97 cents per share, according to Reuters. Sales gained 17 percent to $26.5 billion.

Boeing beat Airbus in commerical orders, delivers and backlogs for the first time since 2001, according to Bloomberg News. The company boosted its 2007 guidance to $4.55 to $4.75 and forecasted it would earn between $5.55 to $5.75 in 2008. Revenue is expected to be $64.5 billion to $65 billion this year and $71 billion to $72 billion.

10:29-- Boeing deserves kudos for interesting hold music.

10:32 -- Disclosures. CEO and CFO are both named James. What are the odds?

CEO Jim McNerney-

WE made great progress in 2006 which has given us solid . THis was an important year for boeing. We executed on our plans and signfiicanyly improved financial performance. By focus both on growth and produ, we were able to deliever double-digit earnings inreases. WE also devlieved a record year in many important measu, baclklog., "Our cash flow went from strong to stronger." 7-7.5 bln. Our record company backlog reached 250 bln at the end of 2006. 1,044 net airplane orders. IDS captured the secure border initiative adn combat search and rescue plus helicotpers. 747 highest order total in 16 years/.

787-We expect to deliver teh 787 on time. MAy 2008. OVer the course of the year in 2006, we acived important milestones in 787. WE made strides in ou technology develop,enmt. KEy milestones: filight cetification, Flying of 787 engines on test beds. arrival of major assemblies. 787 rollout in July. First flight targeted at the end of August. We continue our process of robust contnigency planning.. All of the inestment we have made to date and forsee making are within the guidance. Updates will be given twice a quarter. We are pleased nonetheless with the progress we are making on teh 787 and with teh airplane's performance.

10:40 --cash deployment. WE made progress on Poseidan and internatoinal tankers. I see more growth coming from this area. Our commerical and government services are growing organicially at very attractive rates. We think the services area will continue to attract very attractive

We see more "potential", for better dividends and more share buybacks.

WE are truly raising the bar here at Boeing. We are committed to deliver financial results that match the quality of our people and technology.

Remember several years ago when Boeing Co. (NYSE:BA) could do no right? It was losing ground to Airbus, losing military contracts to rivals and in one corporate mishap after another. Times sure have changed.

Boeing is expected to report a strong fourth quarter on Jan. 31. Analysts expect the company to report profit of 97 cents versus 58 cents a year earlier. The company stampeded past analysts' forecast in the third quarter. The stock is up more than 10 percent in the last six months.

Last year was a great year for Boeing. The Chicago-based company got 1,044 firm orders for commercial aircraft, which likely helped it top Airbus for the first time since 2000. This performance, which was helped by demand for the 787 Dreamliner, stunned analysts, who had expected sales to SLOW DOWN, according to Reuters.

The Dreamliner is a key product for Boeing. In fact, concerns raised by an analyst about possible delays and cost overruns related to the aircraft recently sent Boeing's stock tumbling. Boeing's shares recovered after Wall Street analysts said they thought the development of the aircraft was proceeding on schedule. Deliveries are scheduled to begin next year.

The military side of the business also is humming along. In November, A Boeing-lead team beat Lockheed Martin Corp. (NYSE:LMT) for a major helicopter contract with the U.S. Air Force

How long the good times will last isn't clear. Douglas McIntyre argues that Airbus may be down, but it's far from out.

Also check out some other earnings reports that we're following, and let us know your thoughts on earnings expectations.