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Boeing to Supply 75 737 MAX 8 Jets to GE Capital Aviation
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Leading commercial aircraft maker The Boeing Company (BA - Free Report) received an order for the 737 MAX 8 airplanes from GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric (GE - Free Report) .
Details of the Deal
The value of 75 737 MAX 8 airplanes at current list prices is nearly $8.25 billion. However, it goes without saying that the General Electric unit will enjoy a substantial discount on this amount.
The new jets are intended to help GECAS meet customer demand with innovative technology, fuel efficiency and high reliability.
Single Aisle Aircraft in Demand
Over the next 20 years, Boeing envisions demand for over 39,620 airplanes, valued at more than $5.9 trillion. Single-aisle airplanes will comprise nearly 70.6% of the new deliveries, with airlines requiring over 28,140 jets of this category.
Although Boeing, with its 737 MAX model, is expected to grab a major share of the new orders, Airbus Group SE’s (EADSY - Free Report) A320neo is expected to pose a significant competitive challenge.
Boeing 737 is one of the best-selling planes in the single-aisle market, primarily due to its fuel efficiency and passenger comfort. To maintain its dominance in the commercial aerospace market, Boeing continues to invest in research and development to upgrade and churn out upgraded versions of its existing models.
Iran Air Deal – a Positive
Boeing ended 2016 on a positive note with the signing of a high-value deal with Iran Air for 80 jetliners valued at $16.6 billion.
As of Dec 20, 2016, Boeing had received orders for 470 new airplanes, out of which the majority comprised the 737 model (340 airplanes), followed by the 787 Dreamliner (70).
Price Movement
Shares of Boeing have gained 14.2% over the last 12 months, in-line with the return of the Zacks categorized Aerospace – Defense industry.
Uncertainties related to its high-cost programs, risks related to key project executions and order cancellations might offset the gains that Boeing derived from other initiatives.
Lockheed’s earnings beat estimates by 26.2% in the last reported quarter. The Zacks Consensus Estimate for 2017 moved up by 1.2% in the last 60 days to $12.63.
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Boeing to Supply 75 737 MAX 8 Jets to GE Capital Aviation
Leading commercial aircraft maker The Boeing Company (BA - Free Report) received an order for the 737 MAX 8 airplanes from GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric (GE - Free Report) .
Details of the Deal
The value of 75 737 MAX 8 airplanes at current list prices is nearly $8.25 billion. However, it goes without saying that the General Electric unit will enjoy a substantial discount on this amount.
The new jets are intended to help GECAS meet customer demand with innovative technology, fuel efficiency and high reliability.
Single Aisle Aircraft in Demand
Over the next 20 years, Boeing envisions demand for over 39,620 airplanes, valued at more than $5.9 trillion. Single-aisle airplanes will comprise nearly 70.6% of the new deliveries, with airlines requiring over 28,140 jets of this category.
Although Boeing, with its 737 MAX model, is expected to grab a major share of the new orders, Airbus Group SE’s (EADSY - Free Report) A320neo is expected to pose a significant competitive challenge.
Boeing 737 is one of the best-selling planes in the single-aisle market, primarily due to its fuel efficiency and passenger comfort. To maintain its dominance in the commercial aerospace market, Boeing continues to invest in research and development to upgrade and churn out upgraded versions of its existing models.
Iran Air Deal – a Positive
Boeing ended 2016 on a positive note with the signing of a high-value deal with Iran Air for 80 jetliners valued at $16.6 billion.
As of Dec 20, 2016, Boeing had received orders for 470 new airplanes, out of which the majority comprised the 737 model (340 airplanes), followed by the 787 Dreamliner (70).
Price Movement
Shares of Boeing have gained 14.2% over the last 12 months, in-line with the return of the Zacks categorized Aerospace – Defense industry.
Uncertainties related to its high-cost programs, risks related to key project executions and order cancellations might offset the gains that Boeing derived from other initiatives.
Zacks Rank & a Key Pick
Boeing currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Lockheed Martin Corporation (LMT - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lockheed’s earnings beat estimates by 26.2% in the last reported quarter. The Zacks Consensus Estimate for 2017 moved up by 1.2% in the last 60 days to $12.63.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>