Stock Price Increased 28 Percent Over Past Year
Boeing Co. released its second
quarter financial report Wednesday... and the results are quite
positive for the world's number-two planemaker.
The company's quarterly profit and sales not only met, but
exceeded analysts' expectations. So much so, the plane maker raised
its 2007 profit forecast to $4.80 to $4.95 a share from $4.55 to
$4.75, according to Bloomberg.
Bloomberg compiled an average of 10 analyst estimates for the
company. The estimates were for second-quarter profits of $1.17 a
share with sales projected at $16.2 billion.
Boeing's second quarter net income was $1.05 billion, or $1.35 a
share, compared with a loss of $160 million, or 21 cents last year
due to a $615 million fine levied by the
government resulting from charges relating to
purchasing scandals at the end of a very tough legal period for
Part of the reason Boeing is enjoying such a positive financial
picture is Chief Executive Officer James McNerney reducing the time
it takes to build Boeing's best-selling aircraft, the 737. Another
big factor is record orders. The backlog of orders is currently
valued at $208 billion.
"The ramp-up is well under way, no question about it," said Paul
Nisbet, an aerospace analyst at JSA Research in Newport, Rhode
Island. "They are capitalizing on that enormous order backlog.'" He
labeled Boeing's stock a "buy."
The company has recorded solid orders for 360 commercial
aircraft only trailing Airbus by 153 planes. There are also 683
contracts for the fuel-efficient 787 Dreamliner -- that backlog
alone is valued at around $110 billion.
Boeing stock has jumped 28 percent in the past year, according
"Overall it was a good quarter," said analyst Mark Demos at
Fifth Third Asset Management in Minneapolis. "They also took up
guidance for the year. That is what people expected. It's now where
it should be and the outlook is good."'