Chicago-based Boeing reported a 21 percent drop in its second-quarter profits Wednesday amid weakness in the network and space systems business, but beat analysts expectations.

The aerospace giant earned 787 million U.S. dollars, compared with 998 million a year earlier, or 1.06 dollars a share, better than analysts'estimates of 1.01 dollars per share.

Revenue fell 9 percent to 15.6 billion dollars since the first quarter, missing analysts'expectations, which averaged 16.3 billion dollars.

Boeing reaffirmed its earnings guidance for 2010 at 3.50 dollars to 3.80 dollars per share. The company also expects next year's revenue to be higher than the 64 billion dollars to 66 billion dollars seen in 2010, primarily driven by projected deliveries of its 787 and 747-8 aircraft.

"With our commercial markets recovering, and the priorities of our government customers gaining clarity, we remain well positioned for growth in 2011 and beyond," said Jim McNerney, Boeing chairman, president and CEO in a statement.

Despite delays in Boeing's delivery of its new 787, Morningstar analyst Brian Nelson wrote in a recent report that, " we still like this aerospace giant over the long haul."

Demand for commercial jets boomed during the last decade and despite considerable declines in orders due to the recession, Boeing is still reaping the benefits of previous orders. The company has a commercial backlog equal to about seven times its current annual run rate.

"On the basis of this considerable order book, Boeing jet deliveries will likely advance higher through 2012 and perhaps longer," Nelson wrote in the report released in March."And though cancellations and deferrals should be expected, long-term global airline traffic growth, liberalization of air travel between countries, and replacement demand of more fuel-efficient jets translates, in our view, into a burgeoning 2 trillion-plus dollars world market for large commercial aircraft during the next 20 years."

Earlier this month, Boeing sold its 800th Boeing aircraft to China.