Military

Boeing Stock Soared Last Week to Widen Lead as DJIA's Best Performer

courtesy of United Parcel Service Inc.

Boeing Co. (NYSE: BA) reported second-quarter results last Wednesday, and by the closing bell on Friday the stock had added a whopping 13.7% to its share price. It and now sports a year-to-date gain of nearly 55%. None of the other stocks included in the Dow Jones Industrial Average (DJIA) is even close any more.

That’s not to say that several have made impressive gains. Apple Inc. (NASDAQ: AAPL) is up 29.08%, McDonald’s Corp. (NYSE: MCD) is up 28.04%, Visa Inc. (NYSE: V) is up 27.08% and Caterpillar Inc. (NYSE: CAT) is up 23.03%.

Although quarterly revenues were a bit light at Boeing, profits of $2.55 a share were about 10% above estimates and operating cash flow rocketed higher. To top it off, Boeing raised EPS and cash flow guidance.

The company raised its GAAP and adjusted EPS guidance for the full year. Boeing now expects GAAP EPS to rise from a prior range of $10.35 to $10.55 to a new range of $11.10 to $11.30. Adjusted EPS is now forecast to rise from between $9.20 and $9.40 to a new range of $9.80 to $10.00.

Operating cash flow guidance was raised to $12.25 billion, and capital spending was reduced by $300 million to $2 billion. Boeing still expects to deliver 760 to 765 new commercial aircraft this year and now believes its operating margin will be greater than 10%.

Boeing delivered 183 commercial planes in the second quarter and took new orders and commitments for 571 new planes at the Paris Air Show, raising the value of its commercial backlog to $424 billion (actual contract price, not list price).

Boeing stock closed at $241.27 a share on Friday, in a 52-week range of $126.31 to $242.68. The high was posted Thursday. The 12-month consensus price target is $207.55.

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