The Mexican government has awarded a contract worth $1 billion to The Boeing Company (BA) to provide a satellite system for national security and civil telecommunications.
MEXSAT, end-to-end satellite communications system, is the fourth generation of satellites. MEXSAT will include three satellites, two ground sites, network operations systems and reference user terminals and provide secure communications. The first satellites launch dates back to 1985.
With this contract, Boeing’s satellite order for the year totals six. The company’s revenue from Network & Space Systems showed a year-over-year decline of 14%. We expect such order wins to help the company to report higher revenues. The company ended the third quarter with a backlog of $320.5 billion.
Earlier, in September, Boeing was awarded a five-year period extension to the International Space Station (ISS) contract for sustaining engineering contact by NASA. The contract value is worth $1.24 billion.
Boeing posted a strong third quarter driven by higher Commercial Airplanes volume and strong performance across its core businesses. The company expects its top-line range between $64.5 billion and $65.5 billion and bottom line in the range of $3.80 and $4.00 per share.
The Zacks Consensus Estimate for fourth-quarter 2010 is $1.11 per share. For full years 2010 and 2011, the Zacks Consensus Estimates are respectively, $3.99 per share and $4.62 per share.
Boeing has a unique position as the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries, and one of the largest aerospace and defense contractors in the world. We maintain our “Neutral” recommendation on Boeing. The quantitative Zacks #3 Rank (short-term Neutral rating) for the company indicates no clear directional pressure on the stock over the near term.
Based in Chicago, The Boeing Company designs and produces commercial airplanes, defense systems and civil and defense space systems. The major competitors of the company are General Dynamics Corp. (GD), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
BOEING CO (BA): Free Stock Analysis Report
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