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 (BA) Wins $71M Deal to Support F/A-18E/F Super Hornet
Read MoreHide Full Article
The Boeing Company (BA - Free Report) recently announced a contract involving F/A-18E/F Super Hornets. The Naval Air Systems Command, Patuxent River, MD has awarded the aforementioned contract.
Details of the Deal
Valued at $70.7 million, the contract is expected to be completed by September 2026. Per the terms of the deal, Boeing will provide integrated logistics support in preparing Kuwait pilots for delivery of the Kuwait F/A-18E/F Super Hornets.
The aforementioned integrated logistics support includes general logistics support; logistics program management; logistics support to aircraft during pilot training within the continental U.S. (CONUS); and maintenance of aircraft, aircraft armament equipment, F414 engines, and Sniper pods. It also includes logistics representative support within and outside the CONUS ferry support; packaging, handling, storage and transportation; and program security tasks.
The deal will serve the government of Kuwait, with majority of the work projected to be executed in New Orleans, LA.
What’s Favoring Boeing?
Boeing, one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Furthermore, the company's expertise lies in a wide variety of aircraft components, repairs and modification-related programs.
Notably, its Defense, Space & Security segment’s portfolio has fixed-wing military aircraft, including F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker and T-7A Red Hawk. Boeing's combat-proven aerospace programs and associated services, along with the rapidly growing need for military aircraft due to heightened geopolitical uncertainties worldwide, have resulted in a solid inflow of orders from the Pentagon. The latest contract win is an example of that. Such order flows, in turn, should boost the top line of the defense business segment.
Growth Prospects
With rising security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending a lot on enhancing their defense arsenals. Meanwhile, other nations like the United States and Europe have already been leading the defense market. With the United States being the largest worldwide weapons exporter, the nation has been spending amply on defense products. Boeing, the largest aircraft manufacturer in the United States, thus enjoys a dominant position in the combat aircraft market.
Per a Mordor Intelligence report, the global fixed-wing military aircraft market is expected to witness a CAGR of 6.5% during the 2022-2028 time period, with North America constituting the largest share of this market. Such growth can be attributed to rise in global threats and geopolitical instabilities and increased spending on defense. These projections should benefit Boeing, along with other U.S.-based combat jet manufacturers like Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Textron (TXT - Free Report) .
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft for combat. Northrop Grumman also has a tradition of providing technological leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance and aircraft self-protection systems that enable warfighters to accomplish missions anytime and anywhere, under any conditions.
NOC boasts a long-term earnings growth rate of 3.5%. The Zacks Consensus Estimate for NOC’s 2023 sales implies a 4.6% improvement from the 2022 reported figure.
Lockheed’s Aeronautics business segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Its major programs include F-35, C-130 Hercules, F-16 Fighting Falcon and F-22 Raptor jets.
Lockheed boasts a long-term earnings growth rate of 6.9%. The company has a solid four-quarter earnings surprise of 6.86%, on average.
Textron’s business unit, Textron Aviation Defense, designs, builds and supports versatile and globally-known military aircraft, preferred for training and attack missions. Textron Aviation’s military trainer and defense aircraft include the T-6 trainer, which has been used to train pilots from more than 20 countries, and the AT-6 light attack military aircraft.
TXT boasts a long-term earnings growth rate of 11.2%. The Zacks Consensus Estimate for TXT’s 2023 sales implies a 8.1% improvement from the 2022 reported figure.
Price Movement
Shares of Boeing have gained 27.2% in the past 12 months against the industry’s 12.1% decline.
Image: Bigstock
Boeing (BA) Wins $71M Deal to Support F/A-18E/F Super Hornet
The Boeing Company (BA - Free Report) recently announced a contract involving F/A-18E/F Super Hornets. The Naval Air Systems Command, Patuxent River, MD has awarded the aforementioned contract.
Details of the Deal
Valued at $70.7 million, the contract is expected to be completed by September 2026. Per the terms of the deal, Boeing will provide integrated logistics support in preparing Kuwait pilots for delivery of the Kuwait F/A-18E/F Super Hornets.
The aforementioned integrated logistics support includes general logistics support; logistics program management; logistics support to aircraft during pilot training within the continental U.S. (CONUS); and maintenance of aircraft, aircraft armament equipment, F414 engines, and Sniper pods. It also includes logistics representative support within and outside the CONUS ferry support; packaging, handling, storage and transportation; and program security tasks.
The deal will serve the government of Kuwait, with majority of the work projected to be executed in New Orleans, LA.
What’s Favoring Boeing?
Boeing, one of the major players in the defense business, stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. Furthermore, the company's expertise lies in a wide variety of aircraft components, repairs and modification-related programs.
Notably, its Defense, Space & Security segment’s portfolio has fixed-wing military aircraft, including F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker and T-7A Red Hawk. Boeing's combat-proven aerospace programs and associated services, along with the rapidly growing need for military aircraft due to heightened geopolitical uncertainties worldwide, have resulted in a solid inflow of orders from the Pentagon. The latest contract win is an example of that. Such order flows, in turn, should boost the top line of the defense business segment.
Growth Prospects
With rising security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending a lot on enhancing their defense arsenals. Meanwhile, other nations like the United States and Europe have already been leading the defense market. With the United States being the largest worldwide weapons exporter, the nation has been spending amply on defense products. Boeing, the largest aircraft manufacturer in the United States, thus enjoys a dominant position in the combat aircraft market.
Per a Mordor Intelligence report, the global fixed-wing military aircraft market is expected to witness a CAGR of 6.5% during the 2022-2028 time period, with North America constituting the largest share of this market. Such growth can be attributed to rise in global threats and geopolitical instabilities and increased spending on defense. These projections should benefit Boeing, along with other U.S.-based combat jet manufacturers like Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Textron (TXT - Free Report) .
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft for combat. Northrop Grumman also has a tradition of providing technological leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance and aircraft self-protection systems that enable warfighters to accomplish missions anytime and anywhere, under any conditions.
NOC boasts a long-term earnings growth rate of 3.5%. The Zacks Consensus Estimate for NOC’s 2023 sales implies a 4.6% improvement from the 2022 reported figure.
Lockheed’s Aeronautics business segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Its major programs include F-35, C-130 Hercules, F-16 Fighting Falcon and F-22 Raptor jets.
Lockheed boasts a long-term earnings growth rate of 6.9%. The company has a solid four-quarter earnings surprise of 6.86%, on average.
Textron’s business unit, Textron Aviation Defense, designs, builds and supports versatile and globally-known military aircraft, preferred for training and attack missions. Textron Aviation’s military trainer and defense aircraft include the T-6 trainer, which has been used to train pilots from more than 20 countries, and the AT-6 light attack military aircraft.
TXT boasts a long-term earnings growth rate of 11.2%. The Zacks Consensus Estimate for TXT’s 2023 sales implies a 8.1% improvement from the 2022 reported figure.
Price Movement
Shares of Boeing have gained 27.2% in the past 12 months against the industry’s 12.1% decline.
Image Source: Zacks Investment Research
Zacks Rank
Boeing currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.