The Boeing Company
(
BA
) announced that it has bagged an order from the national airline
of the United Arab Emirates, Etihad Airways. Per the order Boeing
will supply 10 787-9 Dreamliners and 2 777 Freighters to Etihad
Airways. The order, at list price, amounts to a cumulative value of
$2.8 billion. The airline's fleet currently includes 8 Boeing
777-300ERs and one 777 Freighter.
The Boeing 787-9 Dreamliner is a slightly larger version of the
787-8 and will carry 250-290 passengers on different routes
spanning 8,000 to 8,500 nautical miles. The 787 ensures higher fuel
efficiency and succeeds in meeting the high environmental
standards. According to Boeing, the airplane uses 20% less fuel
than its peers.
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 - $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
Zacks Investment
Research