The Boeing Company
) to beat expectations when it reports second quarter 2013
results on Jul 24. Last quarter, it posted a 17.69% positive
Why a Likely Positive Surprise?
Our proven model shows that Boeing is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP:
Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is at +1.27%. This is
a meaningful and leading indicator of a likely positive earnings
surprise for the shares.
Zacks Rank #2 (Buy):
Note that stocks with Zacks Ranks of #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell rated
stocks (#4 and 5) should never be considered going into an
The combination of Boeing's Zacks Rank #2 (Buy) and +1.27% ESP
makes us confident of a positive earnings beat on Jul 24, 2013.
What is Driving the Better Than Expected
Although Boeing is facing hiccups with back-to-back disappointing
news hurting its share price, the company remains well on track
with its robust backlog and deliveries. The defense and aerospace
major even outpaced its rival, Airbus, in terms of deliveries
made in the first six months of this year. Boeing delivered 306
jetliners during the first half of the year, 6.6% higher than the
At the Paris Air Show, Boeing secured 692 airplane orders, which
will boost the company's future growth trajectory. Despite the
technical issues with the 787 Dreamliner or the crashed 777
airplane, swelling orders and rising production schedule hint
that this aerospace manufacturer is in for a multi-year run of
steady revenue and profit growth.
The growth rate represents an acceleration from previous years.
For this quarter and the next, growth is expected to be in the
double digits at 24.2% and 17.2% respectively, while for 2013 and
2014, growth rates are also notable, coming in at 30% and 10.8%,
respectively. The positive trend is seen in the trailing
four-quarter average surprise of 15.05%.
Other Stocks to Consider
Boeing is not the only firm looking up this earnings season. We
also see likely earnings beats coming from these companies:
), with Earnings ESP of +6.35% and a Zacks Rank #3 (Hold).
General Dynamics Corp.
), with Earnings ESP of +0.61% and a Zacks Rank #3 (Hold).
Wesco Aircraft Holdings, Inc.
), with Earnings ESP of +3.23% and a Zacks Rank #3 (Hold).
BOEING CO (BA): Free Stock Analysis Report
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
GENL DYNAMICS (GD): Free Stock Analysis
WESCO AIRCRAFT (WAIR): Free Stock Analysis
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