The Boeing Company
) is slated to release second quarter 2014 financial results before
the market bell on Jul 23, 2014. The company posted a positive
earnings surprise of 14.29% in the preceding quarter. Let's see how
things are shaping up prior to this announcement.
Growth Factors This Quarter
Boeing continued its steady performance in the second quarter, with
commercial deliveries of 181 airplanes and assorted defense
deliveries of 47 products surpassing the comparable year-ago
numbers by 7% and 51% respectively.
The gradual recovery in the global economy brought with it a steady
rise in passenger and freight traffic. Boeing stands to benefit
from this commercial airplane market revival on the strength of its
fuel efficient, constantly evolving airplane models.
A study from Boeing projected long-term demand (2014-2033) for
36,770 commercial airplanes out of which the majority will be for
fuel efficient single aisle aircraft. Boeing 737 is a front runner
in the single aisle aircraft market. In the second quarter the
company received orders for 275' 737 airplanes.
Boeing's Defense, Space & Security division is also doing well,
with orders coming in from its global customer base. During the
quarter the company supplied its defense products to Canada,
Mexico, India and the Republic of Korea among others.
In the to-be-reported quarter Boeing made two strategic
acquisitions, namely, Ventura Solutions Inc., a hardware and
software engineering company and AerData Group B.V., a provider of
technical services for aircraft and engine operators. These
acquisitions will further enhance Boeing's product offering.
Our proven model conclusively shows that Boeing is likely to beat
earnings this quarter. That is because a stock needs to have both a
and a Zacks Rank #1, 2 or 3 for this to happen. This is the case
: This is because the Most Accurate estimate stands at $2.03
while the Zacks Consensus Estimate is $2.02, resulting in +0.50%
Zacks Rank #3
: Boeing's Zacks Rank #3 combined with a +0.50% ESP indicates that
the company is going to beat the earnings forecast this quarter
Other Stocks to Consider
Here are some other companies in the aerospace and defense space
having the right combination of elements to post an earnings beat
B/E Aerospace Inc.
) has an earnings ESP of +1.85% and carries a Zacks Rank #2 (Buy).
Northrop Grumman Corp.
) has an earnings ESP of +1.36% and carries a Zacks Rank #2 (Buy).
) has an earnings ESP of +1.14% and carries a Zacks Rank #3
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