Boeing (BA) Stock Up on New Orders

Shares of The Boeing Company (BA) closed up +1.05 or +1.02 percent to $104.08 on Tuesday after the company launched their 787-10 version of their Dreamliner aircraft at the Paris Airshow. Boeing secured 102 firm orders of its new Dreamliner aircraft worth approximately $30 billion at current list prices. Early Wednesday, the company announced that it had also entered into a deal with U.S. airplane leasing company, CIT Aerospace to deliver 30 of its medium haul 737 MAX aircraft.

The deal is worth $3 billion at current catalogue prices. Daily Chart
Chicago, Illinois based Boeing Co. is among the largest aircraft manufacturers in the world and the second largest aerospace and defense contractor. Boeing stock is a component of the Dow Jones Industrial Average and is the United States largest exporter by dollar value. Boeing launched its 787-10 version of the Dreamliner securing orders from five airlines and leasing companies. The company's first version of the 787 Dreamliner, the 787-8 ran into problems earlier this year due to a malfunction in the plane's lithium-ion batteries, which grounded the entire fleet of Dreamliner aircraft for months. The current version, the 787-10 is the third of its type and has a range of 7,000 nautical miles. According to Boeing CEO for Commercial Airplanes, Ray Conner, the new version is 25 percent more efficient than comparable planes in that price range. Orders for the 787-10 came from British Airways, ordering 12 planes, Air Lease (AL), with 30 planes, GE Capital Services, 10 planes, Singapore Airlines, with 30 planes and United Airlines with 20 aircraft. The orders came right after news that rival manufacturer Airbus had secured an $11.5 billion order form UK discount airline EasyJet. The order was for 135 A320neos, including 35 current generation airplanes and 100 of its next generation aircraft, with an option for purchasing an additional 100 aircraft. In addition to the orders secured at the Paris Airshow, Boeing also struck a deal with CIT Aerospace, which ordered 30 of its new 737 MAX aircraft for a total of $3 billion at current catalogue prices. The new version of the Dreamliner, which has yet to be put into service, will be more fuel efficient and save operating costs for the airline. After the deals announced at the Paris Airshow, Boeing CEO and Chairman Jim McNerney expressed his intention to stay with the company past the retirement age of 65, which has been the company's policy. In addition, he stated that Boeing was "formally committed to building a stretched version of its flagship 787 Dreamliner jet after receiving firm orders for 102 of the planes from five airlines and aircraft leasing companies." Even with the grounding of its 787 fleet earlier this year, Boeing has managed to report revenue for the fourth quarter of 2012 of $22.3 million, a 14 percent increase over 2011's fourth quarter results. Boeing stock has also increased significantly despite the 787 grounding, having traded under $70 as recently as last October. With an EPS of 5.33 and a Price/Earnings ratio of 19.5, Boeing stock continues to show a solid performance so far this year. With the latest plane sales, Boeing stock could continue to trade higher in the near future. Other News About BA Embraer and Boeing Team to Market and Sell KC-390 Medium-Airlift Aircraft Embraer ERJ and Boeing will partner to sell Embraer's KC-390. Boeing's McNerney Wants to Remain CEO Past 65 CEO, 63, wants to stay on after age 65. Other Stocks in the News Is Netflix the Next HBO? Dreamworks deal causes speculation on Netflix. Vodafone Set to Trump Liberty With $10 billion Cash Bid for Kabel Vodaphone in takeover talks with German cable operator. Copyright 2013 by, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA, Inc.) or its employees responsible.

Published on Jun 19, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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