On Jun 7, 2013, the shares of
The Boeing Company
) hit a 52-week high of $102.49. Boeing registered positive
earnings surprises in the last four quarters, with an average
beat of 15.05%.
BOEING CO (BA): Free Stock Analysis Report
ERICKSON AIR-CR (EAC): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
WESCO AIRCRAFT (WAIR): Free Stock Analysis
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The first quarter 2013 results of the aerospace and defense major
surpassed our expectation. The outperformance was due to solid
operating performance fueled by productivity gains and impressive
Boeing has been receiving consistent orders for its commercial
airplanes. In the last two months, the company received orders
for 283 airplanes, most of which were for the 737 models.
Besides, Boeing was able to sort out the 787 battery related
problems, allowing the company to concentrate on production and
delivery of the premier commercial model.
In addition, Boeing is also receiving regular contracts from the
defense establishments. A recent one is to upgrade the
communication system of US B-52 bombers. The company continues to
receive orders to build advanced satellites aimed at improving
the communication systems of US defense departments.
The strong financial position of Boeing enables it to reward its
shareholders through dividend payments and share repurchases. In
Dec 2012, Boeing raised its quarterly dividend by 10% to 48.5
cents per share from the previous payout of 44 cents per share.
Boeing also announced the resumption of its stock buyback program
with repurchases expected to total between $1.5 billion and $2.0
billion in 2013.
We expect long-term earnings growth of 10.26% on the back of
sales growth of 5.03%. The Zacks Consensus Estimate for 2013 and
2014 are $6.34 and $7.17, reflecting year-over-year growth of
26.73% and 13.18%, respectively.
Boeing currently retains a Zacks Rank #3 (Hold). Other companies
in the industry which are worth considering are
Northrop Grumman Corporation
Wesco Aircraft Holdings, Inc
Erickson Air-Crane Incorporated
). Northrop Grumman and Wesco Aircraft presently have a Zacks
Rank #2 (Buy) while Erickson Air-Crane has a Zacks Rank #1