CHICAGO, Jan. 10, 2011 /PRNewswire/ -- Zacks.com Analyst Blog features: The Boeing Company (NYSE: BA), General Dynamics Corp. (NYSE: GD), Lockheed Martin Corporation (NYSE: LMT), Northrop Grumman Corporation (NYSE: NOC) and Moody's Corp (NYSE: MCO).
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Here are highlights from Friday's Analyst Blog:
Boeing Ends 2010 on High Note
The Boeing Company (NYSE: BA) announced that it surpassed its year end delivery target for 2010 by two airplanes. The company delivered 462 commercial airplanes in the fiscal year driven by 376 '737 Next Generation deliveries followed by 74 airplanes of 777 variants.
The company ended the year with a strong backlog of 3,443 airplanes while net orders booked stood at 530 commercial airplanes. Air Lease Corporation booked the largest order for 737, while Emirates headed the order book for 777 during 2010.
Net orders during 2010 were mainly driven by the 737 and 777 variants, mitigating the lukewarm demand for 747 and 787 airplanes that ran into negative. The company received net orders of 486 and 46 airplanes, respectively, for 737 and 777.
Citing a hike in demand, Boeing increased the production rate of Next-Generation 737 thrice in 2010. The production rate was increased from 31.5 airplanes to 34 in May and then to 35 in June. In September it was again raised to 38 airplanes per month effective from second quarter 2013.
In March 2010, Boeing decided to increase the production rate of 777 to 7 airplanes per month from mid - 2011. The existing production level is 5 airplanes a month. In December 2010, the company again raised the production rate of 777 to 8.3 airplanes per month effective from the first quarter of 2013.
Boeing faces stiff competition in the international commercial airlines market space from France-based Airbus. As of November 30, 2010, net orders received by Airbus stood at 388 airplanes, while 461 airplanes deliveries were made during the first eleven months of the year.
We believe the strong backlog and growth in orders reflect a gradual but certain recovery of the commercial airlines market. However, delay in delivery of Boeing's first 787 airplanes plus the negative order book for the last two years for this variant remains a cause for concern.
The Boeing Company currently retains a Zacks #3 Rank (short-term Hold rating). The company competes with the likes of General Dynamics Corp. (NYSE: GD), Lockheed Martin Corporation (NYSE: LMT) and Northrop Grumman Corporation (NYSE: NOC).
Based in Chicago, The Boeing Company designs and produces commercial airplanes, defense systems and civil and defense space systems.
Moody's Raises 2010 Outlook
A leader in the credit rating industry, Moody's Corp (NYSE: MCO) raised its full year 2010 revenue and earnings per share (EPS) guidance based on increased U.S. debt issuance and demand for junk bonds. The shares rose 8.6% ($2.35) and closed at $29.67 following the announcement.
The increased outlook is driven by a higher revenue forecast attributable to robust fourth quarter bond market issuance benefiting Moody's Investors Service (MIS) and a quick completion of software projects for Moody's Analytics customers, according to management.
Moody's had already raised its full year 2010 guidance during the third quarter 2010 earnings call on October 28th and this is the second time the company is raising its outlook.
Earnings per share are expected to be in the $2.08 to $2.14 range, up from the previous $1.90 – $1.96 range. The Zacks Consensus Estimate is currently pegged at $1.91 per share.
Full year 2010 revenues are expected to increase approximately 13.0% versus the previous expectation of an increase in the high single-digit to low-double-digit percentage range. The company did not provide any details on segment revenue growth.
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