The Boeing Company (BA) has inked a deal to supply four 777-300ERs (Extended Range) to Air China, the flagship carrier of the People’s Republic of China, for $1.1 billion.
The addition of the four Boeing airplanes to Air China’s kitty would help expand its international presence.
The 777-300ER model brings the attributes of efficiency and reliability of double engines in the long-range market. The airplane carries 365 passengers and can fly up to a maximum of 7,930 nautical miles (14,690 kilometer).
The company’s Commercial Airplanes segment suffered a year-over-year revenue decline of 11.8% in the second quarter of 2010. We, however, expect such order wins in the segment to help deliver solid results in the upcoming quarters. The segment ended the second quarter with a contractual backlog of $251.6 billion, up 0.4% from the 2009-end level.
Overall, the company reported encouraging second-quarter results based on strong performance across its core business in spite of flagging volumes.
The Zacks Consensus Earnings Estimate for third-quarter 2010 is 99 cents per share. For full years 2010 and 2011, the Zacks Consensus Estimates are respectively, $3.88 per share and $4.86 per share.
Earlier, in July, Boeing had entered into a deal with Air China to supply 20 Next-Generation 737-800 jetliners. The Boeing aircraft will cost approximately $1,398 million with deliveries scheduled in stages from 2013 through 2015.
The Boeing Company is among the best positioned in its sector given its balanced exposure to commercial aircraft and defense equipment. We expect freight and passenger traffic to improve as the economic recovery gains traction, leading to renewed demand in the commercial aerospace market. The company seems well poised to capitalize on the said recovery.
Counted among the negatives, a delay in the delivery of 787 Dreamliner might lead to negative investor sentiment, affecting the company’s valuation.
We maintain our “Neutral” recommendation on Boeing. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the shares over the near term.
Headquartered in Chicago, The Boeing Company designs and produces commercial airplanes (787, 737, 747, 767, 777), defense systems and civil and defense space systems. It is also the largest contractor for NASA (National Aeronautics and Space Administration). It competes with major defense primes like Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
The addition of the four Boeing airplanes to Air China’s kitty would help expand its international presence.
The 777-300ER model brings the attributes of efficiency and reliability of double engines in the long-range market. The airplane carries 365 passengers and can fly up to a maximum of 7,930 nautical miles (14,690 kilometer).
The company’s Commercial Airplanes segment suffered a year-over-year revenue decline of 11.8% in the second quarter of 2010. We, however, expect such order wins in the segment to help deliver solid results in the upcoming quarters. The segment ended the second quarter with a contractual backlog of $251.6 billion, up 0.4% from the 2009-end level.
Overall, the company reported encouraging second-quarter results based on strong performance across its core business in spite of flagging volumes.
The Zacks Consensus Earnings Estimate for third-quarter 2010 is 99 cents per share. For full years 2010 and 2011, the Zacks Consensus Estimates are respectively, $3.88 per share and $4.86 per share.
Earlier, in July, Boeing had entered into a deal with Air China to supply 20 Next-Generation 737-800 jetliners. The Boeing aircraft will cost approximately $1,398 million with deliveries scheduled in stages from 2013 through 2015.
The Boeing Company is among the best positioned in its sector given its balanced exposure to commercial aircraft and defense equipment. We expect freight and passenger traffic to improve as the economic recovery gains traction, leading to renewed demand in the commercial aerospace market. The company seems well poised to capitalize on the said recovery.
Counted among the negatives, a delay in the delivery of 787 Dreamliner might lead to negative investor sentiment, affecting the company’s valuation.
We maintain our “Neutral” recommendation on Boeing. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the shares over the near term.
Headquartered in Chicago, The Boeing Company designs and produces commercial airplanes (787, 737, 747, 767, 777), defense systems and civil and defense space systems. It is also the largest contractor for NASA (National Aeronautics and Space Administration). It competes with major defense primes like Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
BOEING CO (BA): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
Zacks Investment Research
