(BA) - Boeing - easily surpassed the consensus estimate by 30.9%

The Boeing Company (BA), which was first introduced as a Growth and Income stock on Apr 11, beat analysts’ earnings expectations in 14 out of the past 15 quarters. On Dec 11, the Board of Directors announced a 17% increase in its quarterly dividend to 35 cents per share. The company has a current dividend yield of 1.4% and a five-year average dividend yield 1.7%. BA’s return on equity tops that of the industry average—15% compared to 12%. Full Analysis The Boeing Company is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. The company operates in operates through six segments: Commercial Airplanes, Aircraft and Weapon Systems, Network Systems, Support Systems, Launch and Orbital Systems and Boeing Capital Corporation. BA serves customers in 145 countries around the world. When BA was first covered as a Growth and Income stock on Apr 11, the company exceeded analysts’ earnings expectations in 11 out of the past 12 quarters. In the time that has elapsed, the company added three additional positive earnings surprises to its impressive resume. And, the company managed to surprise by a double-digit percentage in all three. The stock is up nearly 10% since its debut. On Oct 25, BA posted third-quarter earnings per share of 89 cents. With analysts expecting 68 cents, the company easily surpassed the consensus estimate by 30.9%. The result also amounted to a 29.0% year-over-year improvement. Revenues increased 18.6% to $14.7 billion, compared to $12.4 billion in the third quarter of 2005. Chairman, President and Chief Executive Officer Jim McNerney stated, “Our strong performance during the third quarter and our growth outlook for 2007 underscore what Boeing can accomplish by an unwavering focus on execution and meeting our commitments. As we continue to drive our growth and productivity efforts, we aim to achieve a new level of consistently strong financial performance.” In addition to reporting solid quarterly results, BA updated its earnings per share guidance for 2006 to between $2.40 and $2.50 per share. The company also increased its 2007 profit guidance by 20 cents per share to between $4.45 and $4.65. Its revenue outlook for 2006 was raised to approximately $60.5 billion, which is the high end of its prior guidance range. Revenue guidance for next year was boosted to between $65.5 billion and $66.0 billion. Earnings per share are projected to grow 14% over the next 3-5 years, while the industry is forecasted to grow at a 13% clip. On Dec 11, the Board of Directors announced a 17% increase in its quarterly dividend to 35 cents per share. The company has a current dividend yield of 1.4% and a five-year average dividend yield 1.7%. BA’s return on equity, a common measure of profitability, tops that of the industry average-15% compared to 12%. BA is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home