The international commercial airplane producer, The Boeing Company (BA) maintained its delivery level in the third quarter of 2011 with deliveries of 127 airplanes versus 124 in the third quarter of 2010. The 737 model continues to be a major pillar of Boeing’s strength in the commercial airplane sector with deliveries of 100 airplanes, followed by its 777 model with 21 deliveries.
Both these models continue to do well due to their fuel efficiency and lower operating costs compared with competing models. The company during the quarter also delivered five 767s and one 787. Boeing year-to-date has delivered 349 airplanes, which include its first delivery of the 787 to Japanese carrier, All Nippon Airways in September.
Boeing is on course to meeting its commercial airplane delivery target for 2011, which is expected to be in the range of 485 to 500 airplanes. In fiscal 2010 Boeing delivered 462 commercial planes compared with 510 for EADS, the European owner of aircraft maker Airbus.
Boeing’s deliveries in the defense and space business were at 29 in the third quarter of 2011. Of this 13 came from F-18 and EA-18G fighter jets, and Apache and Chinook helicopters.
Boeing has a unique position as the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries. Besides, it is one of the largest aerospace and defense contractors in the world. Also, its revenues are spread across more than 90 countries around the globe.
Strong performance from the commercial airplanes business and stable core operations allowed Boeing to register a solid second quarter 2011. The company surpassed both the year-ago results and the Zacks Consensus Estimates. Boeing has raised its earnings per share guidance range for fiscal 2011 to $3.90 – $4.10 from the earlier band of $3.80 – $4.00, encouraged by the solid performance in the most recently reported quarter.
The Zacks Consensus Estimates for third quarter 2011, fiscal year 2011 and fiscal year 2012 currently stand at $1.07 per share, $4.24 per share and $5.27 per share, respectively.
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).
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