The Boeing Company
(
BA
) raised its quarterly dividend by 5% to $0.44 per share from $0.42
per share. The dividend is payable on March 2, 2012, to
shareholders of record as of February 10, 2012. The hike raised
Boeing's annualized dividend per share to $1.76 versus the
pre-existing $1.68.
Earlier, Boeing ended the third quarter of 2011 with cash and
cash equivalents of $5.95 billion and short-term investments of
$3.23 billion. The company generated $1.09 billion of cash from
operating activities in the first nine months of 2011 versus $1.84
billion in the first nine months of 2010. Long-term debt decreased
to $10.78 billion at the end of the third quarter of 2011 from
$11.47 billion at the end of fiscal 2010.
Boeing's strong balance sheet and cash flows provide financial
flexibility in matters of incremental dividend, ongoing share
repurchases and earnings accretive acquisitions. Boeing's
diversified revenue stream provides a strong earnings source
leading to healthy cash flows.
Boeing enjoys a coveted 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 of 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
).
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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