To: Brian Malloy who wrote (24066 ) 7/15/1999 11:55:00 AM From: Sonki Read Replies (1) | Respond to
Boeing Co. (BA) 47 3/8 -1/4: Boeing, Boeing, gone... okay, a cheap play on words, but Boeing did, in fact, hit one out of the park with its second quarter earnings report, topping expectations of $0.47 per share by nine cents. Including a gain of $181 mln, or $0.19 per share, the company earned $701 mln, or $0.75 per share which was a 188% improvement from the yr-ago period. Among the quarterly highlights was a 13% jump in revenues to $15.1 bln, the delivery of 165 commercial airplanes, orders for 88 commercial airliners, and an increase in net margins to 4.6% versus 1.9% in the same period a yr-ago. Company's improved operating efficiency among the key components of its report as it had been plagued by production issues. Fact that Boeing delivered the number of planes it did, and on time with 17% fewer employees, points to an improved operating performance that is showing up in both its top- and bottom-line. Not content to rest on its laurels, company has also announced a "Value Scorecard" whereby progress in four key areas-- inventory turns, facility consolidation, overhead cost management and supplier base consolidation-- will be reported on a quarterly basis. Aside from its internal improvements, investors have additional reason to be hopeful given increases in government defense spending over the next five years and signs of a recovery in Asia that should bode well for future commercial orders. Bullish expectations being built into the stock price as it is up 45% YTD, breaking out of a 3-month consolidation phase yesterday on increased volume. At the moment, Boeing is falling vctim to the sell-the-news trend this earnings season, yet Briefing.com feels stock is poised to make near-term assault on its 52-wk high of 50 1/8. If successful, shares of BA should continue to fly, resulting in an intermediate-term test of the 58-60 range. - PJO BA -tive MF today
