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Boeing &Turkish Airlines in Talks for 40 Dreamliners Order
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Aircraft giant, The Boeing Company (BA - Free Report) , recently announcedthatTurkish Airlines intends to purchase 40 787-9 Dreamliners. Thisrepresents demand for long-haul aircraft amid declining orders for many wide-body models.
If finalized, this agreement will getreflected on the Boeing’s orders and deliveries website.
According to Bloomberg, the 40 planes are estimated to be valued atapproximately $11 billion at list prices. But it goes without saying that the airlines will enjoy a substantial discount on this amount.
Apart from this, Boeing and the Turkish government announced the Boeing Turkey National Aerospace Initiative. This initiative is designed to support the growth of the Turkish aerospace industry, in line with the targets set by Turkey's Vision 2023. It will also strengthen Boeing's presence in the Turkish market.
787-9 Fleet
Boeing’s 787-9 Dreamliner jet represents one of the latest models of the company’s family of superefficient 787 jets, offering more seats and cargo capability than its previous versions. With the fuselage stretched by 6 meters (20 feet) over the 787-8 model, the 787-9 comes with 20% less fuel use and 20% fewer emissions than other aircraft of similar size.
Leveraging the visionary design of the 787-8, the 787-9 jet promises to offer passenger-pleasing features such as large windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.
Till yesterday from its launch of 787-9 mode, Boeing received orders for 675 aircraft from various airline operator across the globe.
Our View
We would like to remind investors that, despite facing several headwinds from the very beginning of its inception, the 787 family of jets has remained one of the crucial centrepieces of Boeing’s commercial aircraft business line.
Evidently, per the company’s second quarter 2017 results, Boeing has made notable progress on the 787 program. Also, it announced lately that the company will increase its production rate for this program to 14 per month in 2019.
Markedly, Turkish Airlineshas been a long-standing customer of Boeing that spans over 70 years. The companies are nowtaking their collaboration to the next level, which will accelerate growth of the Turkish aerospace industry while achieving Boeing's long-term objective to expand its presence in the marketplace.
Going forward, Boeing’s 787 jets will empower the airlines to operate in any place in Europe and some destinations in the United States. In fact, deal for 787-9s is expected to open up more number of global routes for the carrier, thereby encouraging it to buy more of Boeing’s aircraft and bring in more revenues for the aircraft major.
Encouraging Q2 Order Details
A quick sneak peek into the company’s latestorder details further boosts investors’ optimism in the stock. Evidently, in the first half of 2017, Boeing booked 381 net commercial orders. On the contrary, the company’s arch rival, Airbus Group SE (EADSY - Free Report) registered net bookings of just 203 aircraft in the same period, thus trailing far behind.
Being the two largest players in the commercial aircraft space, Boeing and Airbus faces intensifying competition in the Aerospace industry. Nevertheless, Boeing’s huge order growth have recently placed it in a better position in the industry, and orders like the latest one will surely help it to retain that leading position.
Price Movement
Shares of Boeing have surged 94.2% in the last 12 months, outperforming the industry’s gain of 43.3%.
This could be because the company’s strong balance sheet and cash flows that provide financial flexibility in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions.
Zacks Rank & Other Stocks to Consider
Boeing currently holds a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same space include Leidos Holdings, Inc. (LDOS - Free Report) and Northrop Grumman Corporation (NOC - Free Report) . While Leidos Holdings sports a Zacks Rank #1 (Strong Buy), Northrop Grumman carries the same bullish rank as Boeing. You can see the complete list of today’s Zacks #1 Rank stocks here.
Leidos Holdings delivered an average positive earnings surprise of 18.01% in the last four quarters. The Zacks Consensus Estimate for current-year earnings moved up 1.1% in the last 30 days.
Northrop Grumman pulled off an average positive earnings surprise of 12.60% in the last four quarters. Its 2017 earnings estimates inched up 0.2% in the last 30 days.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
Image: Bigstock
Boeing &Turkish Airlines in Talks for 40 Dreamliners Order
Aircraft giant, The Boeing Company (BA - Free Report) , recently announcedthatTurkish Airlines intends to purchase 40 787-9 Dreamliners. Thisrepresents demand for long-haul aircraft amid declining orders for many wide-body models.
If finalized, this agreement will getreflected on the Boeing’s orders and deliveries website.
According to Bloomberg, the 40 planes are estimated to be valued atapproximately $11 billion at list prices. But it goes without saying that the airlines will enjoy a substantial discount on this amount.
Apart from this, Boeing and the Turkish government announced the Boeing Turkey National Aerospace Initiative. This initiative is designed to support the growth of the Turkish aerospace industry, in line with the targets set by Turkey's Vision 2023. It will also strengthen Boeing's presence in the Turkish market.
787-9 Fleet
Boeing’s 787-9 Dreamliner jet represents one of the latest models of the company’s family of superefficient 787 jets, offering more seats and cargo capability than its previous versions. With the fuselage stretched by 6 meters (20 feet) over the 787-8 model, the 787-9 comes with 20% less fuel use and 20% fewer emissions than other aircraft of similar size.
Leveraging the visionary design of the 787-8, the 787-9 jet promises to offer passenger-pleasing features such as large windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.
Till yesterday from its launch of 787-9 mode, Boeing received orders for 675 aircraft from various airline operator across the globe.
Our View
We would like to remind investors that, despite facing several headwinds from the very beginning of its inception, the 787 family of jets has remained one of the crucial centrepieces of Boeing’s commercial aircraft business line.
Evidently, per the company’s second quarter 2017 results, Boeing has made notable progress on the 787 program. Also, it announced lately that the company will increase its production rate for this program to 14 per month in 2019.
Markedly, Turkish Airlineshas been a long-standing customer of Boeing that spans over 70 years. The companies are nowtaking their collaboration to the next level, which will accelerate growth of the Turkish aerospace industry while achieving Boeing's long-term objective to expand its presence in the marketplace.
Going forward, Boeing’s 787 jets will empower the airlines to operate in any place in Europe and some destinations in the United States. In fact, deal for 787-9s is expected to open up more number of global routes for the carrier, thereby encouraging it to buy more of Boeing’s aircraft and bring in more revenues for the aircraft major.
Encouraging Q2 Order Details
A quick sneak peek into the company’s latestorder details further boosts investors’ optimism in the stock. Evidently, in the first half of 2017, Boeing booked 381 net commercial orders. On the contrary, the company’s arch rival, Airbus Group SE (EADSY - Free Report) registered net bookings of just 203 aircraft in the same period, thus trailing far behind.
Being the two largest players in the commercial aircraft space, Boeing and Airbus faces intensifying competition in the Aerospace industry. Nevertheless, Boeing’s huge order growth have recently placed it in a better position in the industry, and orders like the latest one will surely help it to retain that leading position.
Price Movement
Shares of Boeing have surged 94.2% in the last 12 months, outperforming the industry’s gain of 43.3%.
This could be because the company’s strong balance sheet and cash flows that provide financial flexibility in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions.
Zacks Rank & Other Stocks to Consider
Boeing currently holds a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same space include Leidos Holdings, Inc. (LDOS - Free Report) and Northrop Grumman Corporation (NOC - Free Report) . While Leidos Holdings sports a Zacks Rank #1 (Strong Buy), Northrop Grumman carries the same bullish rank as Boeing. You can see the complete list of today’s Zacks #1 Rank stocks here.
Leidos Holdings delivered an average positive earnings surprise of 18.01% in the last four quarters. The Zacks Consensus Estimate for current-year earnings moved up 1.1% in the last 30 days.
Northrop Grumman pulled off an average positive earnings surprise of 12.60% in the last four quarters. Its 2017 earnings estimates inched up 0.2% in the last 30 days.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
See these buy recommendations now >>