While the company's sales funnel remains strong enough to exceed this range, the company gave a slightly conservative guidance to reflect uncertainty related to timing of certain orders.

Although we had anticipated tepid guidance, the company was far more conservative than we anticipated. The company projected April quarter revenue in the range of $14.2 billion to $14.6 billion, with earnings of 39 cents to 41 cents per share. This was below our previous revenue and earnings estimates of $14.6 billion and 41 cents per share.

Both sales and earnings exceeded the guidance given by the company at the start of the quarter. Just as important, these results provide further evidence that top-line growth has returned and that further improvement in profitability can be achieved.

We are hopeful that the company will lay out more conservative guidance for 2002 as a means to rebuild credibility with investors.

Given that we are still in early 2006, the 2007 guidance is likely to be conservative with higher-than-2006 airplane deliveries, better margins at both [Boeing Commercial Airplanes] and [Integrated Defense Systems], strong cash flow, but low single-digit top line growth for its defense business.

I wouldn't read too much into the guidance. They have always been somewhat conservative and are probably saving something for their analyst meeting.