We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing Wins $92M FMS Deal to Support Kuwait's F/A-18 Jets
Read MoreHide Full Article
The Boeing Company (BA - Free Report) secured a $92.4-million contract under the foreign military sales program, where it will provide the government of Kuwait with Phase 1 integrated logistics support for its 22 F/A-18E and 6 F/A-18F Super Hornets. The contract has been awarded by the Naval Air Systems Command, Patuxent River, Maryland.
Majority of the work will be executed in St. Louis, MO, along with other locations across the United States, with an expected completion date of December 2020.
Boeing's Alliance With Kuwait
From the perspective of international sales for its F-18 fleet, the company enjoys a strong alliance with Kuwait. This year, Boeing received two massive contracts from the government of Kuwait, valued at $1.2 billion and $1.5 billion along with other notable contracts.
Such contract wins should further strengthen Boeing’s relationship with Kuwait’s Air Force, thereby bolstering its position in the expanding military market overseas. Apart from the FA-18'S, Boeing provides a range of other military products to Kuwait that includes AH-64D Apaches, F/A-18C/D Classic Hornets, C-17s, F/A-18 weapons tactics trainers and Harpoon Block IC missiles.
What Favors Boeing?
As Boeing’s key forte lies in manufacturing combat-proven aircraft, it has continued to secure large number of contracts from the Pentagon, courtesy of its proven expertise in aerospace programs. Subsequently, revenues of its Defense, Space & Security (BDS) segment witnessed 13% rise year over year to $5.73 billion in third-quarter 2018. We expect the latest contract, along with a handful of other notable deals, to help Boeing’s BDS segment deliver such solid performance in upcoming quarters as well.
In this context, it is imperative to mention that FMS contracts have played a key role recently to drive Boeing’s operational performance. Evidently, the company’s backlog at BDS stood at $58 billion, 31% of which comprised orders from international clients. We, thereby, expect FMS deals to keep boosting order growth, going forward.
Budgetary Advancements to Aid Boeing
The fiscal 2019 defense budget, approved this June, provisioned major war fighting investments of $21.7 billion for aircraft that further included an investment plan of $2 billion for procuring 24 F/A-18 Jets. Such inclusions reflect solid growth prospects for F/A-18 Jets and Boeing's BDS segment, which, in turn, are likely to boost the company’s profit margin.
Price Movement
Boeing’s stock has gained 10.8% in the past year against the industry’s decline of 1.5%. The outperformance was primarily led by the robust worldwide demand for its commercial aircraft and military jets.
Zacks Rank & Other Stocks to Consider
Boeing currently carries a Zacks Rank #2 (Buy).
A few other top-ranked companies in the same sector are Aerojet Rocketdyne Holdings , Teledyne Technologies Incorporated (TDY - Free Report) and Raytheon Company .
Aerojet Rocketdyne came up with average positive earnings surprise of 19.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has increased 43.3% to $1.82 in the past 90 days.
Teledyne Technologies came up with average positive earnings surprise of 12.92% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has increased 6% to $8.75 in the past 90 days.
Raytheon delivered average positive earnings surprise of 6.71% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 1.7% to $10.10 cents in the past 90 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Boeing Wins $92M FMS Deal to Support Kuwait's F/A-18 Jets
The Boeing Company (BA - Free Report) secured a $92.4-million contract under the foreign military sales program, where it will provide the government of Kuwait with Phase 1 integrated logistics support for its 22 F/A-18E and 6 F/A-18F Super Hornets. The contract has been awarded by the Naval Air Systems Command, Patuxent River, Maryland.
Majority of the work will be executed in St. Louis, MO, along with other locations across the United States, with an expected completion date of December 2020.
Boeing's Alliance With Kuwait
From the perspective of international sales for its F-18 fleet, the company enjoys a strong alliance with Kuwait. This year, Boeing received two massive contracts from the government of Kuwait, valued at $1.2 billion and $1.5 billion along with other notable contracts.
Such contract wins should further strengthen Boeing’s relationship with Kuwait’s Air Force, thereby bolstering its position in the expanding military market overseas. Apart from the FA-18'S, Boeing provides a range of other military products to Kuwait that includes AH-64D Apaches, F/A-18C/D Classic Hornets, C-17s, F/A-18 weapons tactics trainers and Harpoon Block IC missiles.
What Favors Boeing?
As Boeing’s key forte lies in manufacturing combat-proven aircraft, it has continued to secure large number of contracts from the Pentagon, courtesy of its proven expertise in aerospace programs. Subsequently, revenues of its Defense, Space & Security (BDS) segment witnessed 13% rise year over year to $5.73 billion in third-quarter 2018. We expect the latest contract, along with a handful of other notable deals, to help Boeing’s BDS segment deliver such solid performance in upcoming quarters as well.
In this context, it is imperative to mention that FMS contracts have played a key role recently to drive Boeing’s operational performance. Evidently, the company’s backlog at BDS stood at $58 billion, 31% of which comprised orders from international clients. We, thereby, expect FMS deals to keep boosting order growth, going forward.
Budgetary Advancements to Aid Boeing
The fiscal 2019 defense budget, approved this June, provisioned major war fighting investments of $21.7 billion for aircraft that further included an investment plan of $2 billion for procuring 24 F/A-18 Jets. Such inclusions reflect solid growth prospects for F/A-18 Jets and Boeing's BDS segment, which, in turn, are likely to boost the company’s profit margin.
Price Movement
Boeing’s stock has gained 10.8% in the past year against the industry’s decline of 1.5%. The outperformance was primarily led by the robust worldwide demand for its commercial aircraft and military jets.
Zacks Rank & Other Stocks to Consider
Boeing currently carries a Zacks Rank #2 (Buy).
A few other top-ranked companies in the same sector are Aerojet Rocketdyne Holdings , Teledyne Technologies Incorporated (TDY - Free Report) and Raytheon Company .
While Aerojet Rocketdyne and Teledyne Technologies currently sport a Zacks Rank #1 (Strong Buy), Raytheon carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aerojet Rocketdyne came up with average positive earnings surprise of 19.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has increased 43.3% to $1.82 in the past 90 days.
Teledyne Technologies came up with average positive earnings surprise of 12.92% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has increased 6% to $8.75 in the past 90 days.
Raytheon delivered average positive earnings surprise of 6.71% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 1.7% to $10.10 cents in the past 90 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>