Can Higher Volumes & Deliveries Aid Boeing's (BA) Q4 Earnings?
Zacks Investment Research | Jan 24, 2019 09:05PM ET
The Boeing Company (NYSE:BA) is set to release fourth-quarter and full-year 2018 results on Jan 30, before the opening bell. Higher commercial deliveries should boost revenue growth in the to-be-reported quarter.
Solid order growth, in the form of higher backlog, is likely to get reflected in the quarterly result.
Let's take a detailed look at the factors influencing Boeing’s performance in the fourth quarter.
Multiple Contract Wins
Boeing is the largest aircraft manufacturer and one of the major aerospace and defense contractors in the United States. Therefore, it enjoys a solid inflow of contracts from both the Pentagon as well as foreign allies, courtesy of the company’s varied product offerings.
Among the commercial contracts that Boeing won in the fourth quarter, the significant ones include a $12-billion order for delivering 100 737 MAX 8 aircraft to Green Africa Airways and a $5.9-billion order for supplying 30 737 MAX jets with options for 20 more to a Saudi-based airline. The aerospace giant won another $5.9 billion order to supply 40 737 MAX 8 airplanes to a Korea-based airline.
In the defense space, the company clinched a modification contract worth $367 million related to the CMV-22B and MV-22B variants of the V-22 family of tiltrotors and a $240 million deal for performing highly complex technical systems engineering and integration requirements associated with the Ballistic Missile Defense system. Additionally, it secured a $307.5 million contract for offering integrated product support in relation to F/A-18 jets’ A-D and E-G versions. The company also won a few more multi-million-dollar contracts from the Pentagon.
Such solid order growth must have boosted Boeing’s backlog count, which should get duly reflected in the upcoming quarterly results.
The Boeing Company Price and EPS Surprise
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