The Boeing Company
(
BA
) announced that it has finalized an agreement with
Air Lease Corporation
(
AL
) for supplying four 787-9 Dreamliners. Air Lease also exercised an
existing option for procurement of four Next-Generation 737-800s.
Overall, the order value came at above $1.2 billion.
The Boeing 787-9 Dreamliner is a slightly larger version of the
787-8 and will carry 250-290 passengers on routes spanning 8,000 to
8,500 nautical miles. The 787 provides airlines with higher fuel
efficiency, resulting in high environmental standards. According to
Boeing, the airplane uses 20% less fuel than its peers.
Boeing has a unique position as the largest aircraft
manufacturer in the world in terms of revenues, orders and
deliveries. Besides, it is one of the leading global aerospace and
defense contractors. Also, its revenues are spread across more than
90 countries.
Strong performance from the commercial airplanes business and
stable core operations allowed Boeing to register a solid third
quarter 2011. The company's earnings surpassed both the year-ago
figure and the Zacks Consensus Estimate.
Boeing expects its fiscal 2011 revenue to be in the range of $68
billion to $70 billion. However, the company recently raised its
earnings per share guidance for fiscal 2011 to $4.30 - $4.40 from
the earlier band of $3.90 - $4.10 buoyed by strong performance
across its core businesses.
The guidance incorporates the delivery initiation of revenue
boosters like the 787 Dreamliner and 747-8 series, which began in
the third quarter. However, the company revised the Commercial
Airplanes' deliveries guidance for fiscal 2011. Deliveries for
fiscal 2011 are now expected to be approximately 480, down from the
earlier range of 485 - 495. The reduction was due to lower planned
deliveries on development programs (especially 787 and 747-8
units).
Boeing currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. Considering the fundamentals, we are
maintaining our Neutral recommendation on the stock. This is in
sync with other aerospace and defense behemoths like
General Dynamics Corporation
(
GD
) and
Lockheed Martin Corporation
(
LMT
).
AIR LEASE CORP (
AL
): Free Stock Analysis Report
BOEING CO (
BA
): Free Stock Analysis Report
GENL DYNAMICS (
GD
): Free Stock Analysis Report
LOCKHEED MARTIN (
LMT
): Free Stock Analysis Report
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