Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The Paris Show has brought in big orders for The Boeing Company (BA - Analyst Report). With the launch of the 787-10 version of its flagship Dreamliner aircraft, the company has in total received 102 firm orders for this version from five different airlines worth $30 billion.

United Continental Holdings, Inc. (UAL - Analyst Report) became the launch customer with 20 firm orders. These include 10 new orders while the remaining 10 comprise conversion orders from the 787-9 model. We note that the first flight for 787-9 is slated for late 2013.

The company received 30 orders each from Singapore Airlines and Air Lease Corporation (AL - Snapshot Report), 12 orders from British Airways, and 10 orders from GE Capital Aviation Services, a subsidiary of General Electric Company (GE - Analyst Report).

Boeing indicated that it has begun designing the plane and expects final assembly and flight test to begin in 2017. First delivery is scheduled for 2018.

This version of the Dreamliner is 15% larger in capacity compared to 787-8 and 787-9 (yet to be launched) and has a carrying capacity of up to 330 passengers. With the same fuel-efficient carbon-composite materials, the 787-10 can fly up to 7,000 nautical miles. Also, the aircraft is 25% more fuel efficient compared to its predecessors.

The second day of the Paris show brought in more orders for fuel efficient passenger jets, including single-aisled as well as wide-bodied jets. Other orders for Boeing include 3 firm orders from Air Lease Corp. for 787-9, 2 firm orders from Qatar Airways for 777-300 extended range (“ER”), 4 commitments from SkyMark Airlines for 737 MAX and 7 commitments from Qatar Airways for 777-3000 ER.  

These multi-billion dollar orders would act as a catalyst to growth. Despite the battery issue related to 787-8 that resulted in the grounding of the aircraft, Boeing is flooded with orders because of the sheer fact that its aircrafts are more fuel efficient. This not only reduces cost per mile but also cuts pollution levels. Moreover, these aircrafts are right-sized for many long-haul markets. Going forward, with new plane program announcements, we expect the company to receive more and more orders.

However, like other major defense contractors, the company continues to face the adverse effects of sequestration and domestic budget cuts. The company presently retains a short-term Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%