Dow Earnings Season: Boeing Aims for the Skies

Can the aerospace giant regain its form and get its stock moving in the right direction?

Jul 22, 2014 at 12:30PM

Quarterly results are coming fast and furious now for companies in the Dow Jones Industrials (DJINDICES:^DJI), and we've already seen a number of fresh financial reports from the consumer and financial sectors. Tomorrow morning, Boeing (NYSE:BA) will add its name to the list of reporting Dow components, and although most investors will watch the commercial side of its aircraft business, defense competitors Lockheed Martin (NYSE:LMT) and Raytheon (NYSE:RTN) will keep an eye on how well their rival is doing with military sales.

Ba F
Source: Boeing.

Boeing will release its latest quarterly results on Wednesday morning before the stock market opens. The company has scheduled a conference call for 10:30 a.m. EDT to discuss the results.

Investors have high hopes for Boeing's earnings, with a modest rise in revenue expected to produce a sizable 20% jump in earnings per share for the aerospace giant. Coming on the heels of four straight quarters of positive surprises on the earnings front, Boeing shareholders would like to see even more signs of strength from the company.

Most of those watching Boeing have paid closest attention to its soaring commercial aircraft business. Strength in the airline industry has freed up capital for companies to spend on new and updated airplanes, and Boeing's newer models offer huge advantages in fuel savings and operational efficiency that make airlines' investment in purchasing planes pay off in the long run. Boeing now estimates the size of the commercial aircraft market to be $5.2 trillion over the next 20 years, and the company wants to make sure it gets its share of the more than 36,000 planes it believes customers will buy from manufacturers during that time frame.

Ba F

Source: Boeing.

In this context, many investors haven't noticed some of the news hitting Boeing's defense business. Boeing finally got some good news on its Ground-based Midcourse Defense missile-defense system, with a test late last month marking the program's first successful intercept in more than five years. Boeing was also part of a team including Raytheon and Lockheed Martin that won a bid to provide Qatar with helicopters and defense systems worth about $11 billion. Even as the U.S. defense budget remains under pressure, Boeing has successfully defended much of its business and has also reaped rewards by looking abroad.

With geopolitical risk on the rise again, the Dow Jones Industrials have often come under pressure when threat levels increased. Yet Boeing provides a natural hedge against military threats, as its business stands to gain from heightened security levels. Be sure to remember Boeing's importance for the commercial aircraft market and global security as you assess its results tomorrow morning.

OPEC is absolutely terrified of this game changer
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour (That's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!

Dan Caplinger has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin and Raytheon Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers