China Sanctions Boeing, Raytheon, and Lockheed Martin for Arms Sales
Jim Cramer Bullish on Honeywell, Weighs In on Spin-Offs
On Friday, Jim Cramer said Honeywell was “a very smart company” for spinning off Garrett Motion (GTX) and Resideo Technology (REZI).
UTX’s Q3 Earnings Exceed Estimates, Outlook Raised
United Technologies (UTX) reported its Q3 earnings today before the market opened. UTX’s revenues of $19.5 billion beat the expectation of $19.39 billion.
UTX Earnings: Has Wall Street Set the Bar Too Low?
UTX is scheduled to release its third-quarter earnings results on October 22 before the market opens. It’s returned 28.5% year-to-date.
Trump Administration Floats Sale of Arms, Jets to Taiwan
The Trump administration floated the sale of fighter jets to Taiwan. In an $8 billion deal, Lockheed Martin plans to sell 66 F-16 fighters to Taiwan.
Daniel Loeb’s Third Point Cuts Stake in United Technologies
Daniel Loeb’s Third Point has reduced its stake in United Technologies. As per a regulatory filing, the fund sold 480,000 UTX shares in the second quarter.
Is FedEx Bill Ackman’s Next Investment Target?
FedEx stock gained nearly 3% on August 6 on speculation that Bill Ackman’s Pershing Square had bought a significant stake in the company.
Why Boeing Investors Should Have India on Their Radar
Boeing and Lockheed Martin are competing for a $15 billion order. Defense spending is expected to increase as India’s armed forces modernize.
Why Dan Loeb Is Concerned about the UTX-RTN Deal
Dan Loeb explained his opposition to the United Technologies (UTX) and Raytheon (RTN) merger in a letter to the members of UTX’s board on June 28.
Dan Loeb Joins Bill Ackman, Opposes UTX-RTN Merger
On June 9, United Technologies (UTX) and Raytheon (RTN) agreed to merge their businesses to create a new aerospace and defense powerhouse.
Bill Ackman and Dan Loeb Oppose UTX-RTN Aerospace Merger
UTX has been a key contributor to Pershing’s gains so far this year.
Why UTX-RTN Merger Obstacles May Not End Anytime Soon
On June 9, United Technologies (UTX) and Raytheon Company (RTN) agreed to merge their businesses to create a new aerospace and defense powerhouse.
UTX-RTN Merger May Face Hurdle in Getting Anti-Trust Approval
It likely won’t be easy for United Technologies and Raytheon to merge their businesses, as President Trump and the Pentagon are concerned about reduced competition.
United Technologies-Raytheon Merger to Create Long-Term Value
The merger between United Technologies (UTX) and Raytheon (RTN) is likely to build a broad and complementary portfolio of high-growth aerospace and defense products.
Why Modi’s Second Term Is Good News for US Defense Contractors
One of the key points on which Modi campaigned was national security.
How Boeing Stock Has Fared in 2018
Boeing (BA) stock started 2018 on a positive note and carried this momentum forward up to November 7, with a return of ~26%.
How Wall Street Views Boeing at the End of 2018
Wall Street analysts have provided a consensus “buy” recommendation with a consensus ~1.92 rating for Boeing (BA) stock.
Why Wall Street Expects a 50% Increase in Boeing’s Q4 EPS
Boeing (BA) has an impressive record of reporting better-than-expected quarterly earnings results.
Boeing’s Recent Sell-Off Could Mark a Buying Opportunity
Stocks have fallen significantly this month so far due to a broader market sell-off. The three major US indices—the Dow Jones, NASDAQ, and S&P 500—have lost 14.7%, 15.5%, and 14.8% of their respective value.
Boeing Enhances Shareholders’ Wealth with Dividend Hike, Buyback
The Boeing Company, the world’s largest aero-defense company, raised its quarterly dividend by 20% on December 17.
Inside Boeing’s Defense Segment’s Q2 2018 Revenue
The Defense, Space & Security segment is the second-largest contributor to Boeing’s (BA) revenue.
Boeing Exceeds Analysts’ Q2 2018 Earnings Estimates, Stock Soars
Boeing, the world’s largest aerospace company, announced its second-quarter earnings results before the market opened on July 25.
How Boeing’s Forward Dividend Yield Compares with Its Peers
With a closing price of $331.30 on June 26, Boeing (BA) has a forward dividend yield of 2%.
Comparing Boeing’s Dividend Payout Ratio with Its Peers
From $1.6 billion in the first quarter of 2017, Boeing’s (BA) cash flow has increased 68% to $2.7 billion in the first quarter of 2018.
Boeing Declared Quarterly Dividend of $1.71 Per Share
On June 25, Boeing (BA) announced a quarterly cash dividend of $1.71 per share on its outstanding common stock.
How Rising Crude Oil Prices Could Affect Boeing’s Order Book
On May 22, crude oil (DBO) rose towards $80.0 per barrel.
How Boeing’s Dividend Yield Stacks Up with Peers
Boeing (BA) has a forward dividend yield of 2%, which is slightly higher than the average 1.6% forward dividend yield of the aerospace and defense sector peer group.
Analyzing Boeing’s Free Cash Flows and Dividend Prospects in 2018
On March 31, Boeing (BA) had cash and cash equivalents of $9.2 billion, up ~$400.0 million from $8.2 billion on December 31, 2017.
KLX Acquisition: Boeing’s Shot in the Arm for Global Services
On May 1, Boeing (BA) announced an agreement to acquire aerospace parts distributor KLX (KLXI) for $3.2 billion in cash.
Wall Street’s Views on Boeing Ahead of Its 1Q18 Earnings Release
Analysts expect Boeing (BA) to post adjusted EPS (earnings per share) of $2.56 in 1Q18, representing 27.2% growth YoY (year-over-year).
Could Boeing Exceed Analysts’ Revenue Estimates in 1Q18?
Analysts now expect Boeing’s revenue to be $22.1 billion, after revising their estimate upward by $300.0 million.
How Boeing Stock has Trended Ahead of its 1Q18 Earnings Release
Boeing (BA), the world’s largest aerospace company, is set to declare its 1Q18 results on April 25, 2018, before markets open.
Must-Know Recent Developments from Boeing
In January 2018, Boeing took a 17-aircraft lead over its archrival Airbus. Boeing delivered 44 commercial aircraft compared Airbus’s 27 aircraft.
Boeing Sets Sights on Woodward Acquisition
On February 8, 2018, the Wall Street Journal reported that Boeing (BA) intends to acquire aerospace parts maker Woodward (WWD).
How Wall Street Analysts View Boeing after Its 4Q17 Earnings
Boeing (BA) has a consensus rating of ~2.1 with an overall “buy” recommendation.
Will Boeing Deliver on Operating Margin Estimates in 4Q17?
Analysts surveyed by Thomson Reuters expect Boeing (BA) to report an operating profit of $2.7 billion in 4Q17.
Could Boeing’s Dividend Payout Rise in 2017?
Dividends Boeing (BA) has been paying dividends consistently for the past 20 years. In 3Q17, the company paid a total of $900 million in dividends, which was ~30% of its free cash flow generated in the quarter. Falling yield At its current market price of $268, Boeing has an indicated dividend yield of 2.1%. The yield has been […]
Boeing Overtakes GE as Highest-Valued US Manufacturer
Last week, Boeing (BA) overtook General Electric (GE) as the most valued company by market capitalization, breaking GE’s 27-year record.
How Have Price Gains Impacted RTN’s Dividend Yield?
Raytheon Company (RTN) is a technology and innovation frontrunner that focuses on worldwide defense and other government markets.
How Investors View Boeing’s High Dividend
High yield Despite the positive run-up Boeing (BA) stock has enjoyed in 2017, its current indicated dividend yield is 2.2%. Boeing’s dividend yield is now lower than the Dow Jones Industrial Average dividend yield of 2.7%. Peer Lockheed Martin (LMT) has an indicated dividend yield of 2.4%, United Technologies (UTX) has an indicated dividend yield […]
Canada Puts Boeing Defense Order on Hold
The Canadian Air Force placed an order for 65 Lockheed Martin (LMT) F-35 fighter jets for $30 billion. The CAF canceled the order and replaced it with 18 Boeing CF-18 aircraft for $5.2 billion.
How Boeing’s Current Valuation Compares
Current valuation At present, Boeing (BA) has a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 11.2x, which is higher than its average multiple since February 2008 of 8.8x. The market is expecting Boeing’s EBITDA to rise 51% in 2017. As shown in the chart above, Boeing has mostly traded above […]
Understanding Boeing’s 2017 Expectations for Revenues and Margins
Boeing (BA) recorded $94.6 billion in revenues for 2016—a 2% YoY fall, mainly on the back of lower commercial airplane deliveries in the year.
What Are Analysts’ Recommendations for Boeing Stock?
Of the 25 analysts tracking Boeing (BA) stock, 24% have a “strong buy” recommendation on the stock and 28% tracking the stock have a “buy” recommendation.
Can Boeing Afford Its Huge Share Buyback Plan?
On December 12, 2016, Boeing (BA) announced a stock repurchase plan worth ~$14 billion, which represents almost 15% of its outstanding shares.
Gabelli Downgrades Johnson Controls Stock to ‘Hold’
In fiscal 2016, JCI reported net sales of $37.7 billion, a rise of 1.3% YoY (year-over-year).
Defense Sector Stocks Achieve Liftoff from Trump’s Victory
Because Republicans retained control of both legislative houses, investors expected that defense budgets would be easier to pass.
How Did Johnson Controls Perform in 4Q16?
Price movement Johnson Controls (JCI) has a market cap of $41.7 billion. It rose 5.7% to close at $43.94 per share on November 8, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 6.5%, -1.8%, and 40.9%, respectively, on the same day. JCI is trading 1.9% above its 20-day moving average, 2.0% […]
What Are the Different Types of Pension Plans?
As DB pension plans have substantially higher risks for companies, after 2008, many companies froze their DB pension plans and shifted to DC pension plans.
Inside Boeing’s Often Overlooked Risk: Pension Liabilities
For Boeing (BA) to fulfill this promise to its employees, it would require $17.9 billion—a huge sum by any standard.
Johnson Controls Completed Its Spin-Off of Adient
Johnson Controls fell 7.9% to close at $40.32 per share on October 31. Its weekly, monthly, and YTD price movements were -9.2%, -13.4%, and 17.9%.
Northrop Grumman Stock Jumps as Earnings Crush Estimates
Leading defense contractor (PPA) Northrop Grumman (NOC) declared its 3Q16 earnings on October 26, 2016. The company’s earnings per share rose 22%.
What’s the Truth behind Boeing’s Negative Margins?
Boeing’s EPS guidance was lowered to $6.40–$6.60 from $8.45–$8.65 expected earlier. This will now be lower than the $7.44 EPS reported in 2015.
Raytheon: A Top Pick to Hedge against Political Risks
Credit Suisse cited L-3 Communications (LLL), Raytheon (RTN), and General Dynamics (GD) as its picks to hedge against the election cycle.
Why Is Raytheon’s Reliance on the Army a Concern?
Raytheon is protected from US government spending due to its high international exposure. However, its Army exposure is a source of risk.
Will Raytheon Fall Due to Its Disagreements with Leonardo?
There have been speculations about Raytheon’s disagreements with Leonardo over workshare agreements. The disagreements could unnerve its partners.
Analysts Expect Raytheon to Beat Its 3Q16 Earnings Guidance
Raytheon will release its 3Q16 earnings on October 27. The consensus forecast is for Raytheon to post an adjusted EPS of $1.66—12.9% growth YoY.
Elections up the Ante in Choosing Best Defense Stock Investment
With the US presidential elections upon us in a few weeks, investors may be looking for a cover that protects their portfolio from political risks.
Northrop Faces Fierce Challenge from Lockheed over T-X Contract
Both Boeing’s (BA) and Northrop Grumman’s (NOC) teams have submitted clean sheet bids to the US Air Force.
Bernstein Has Rated Johnson Controls ‘Outperform’
Johnson Controls (JCI) has a market cap of $42.3 billion. It rose 0.61% to close at $44.55 per share on September 16, 2016.
Macquarie Upgrades Johnson Controls to ‘Outperform’
Johnson Controls (JCI) has a market cap of $30.9 billion. It rose by 1.4% to close at $47.86 per share on September 8, 2016.
Why Did Johnson Controls Rise on September 6?
Johnson Controls (JCI) has a market cap of $31.5 billion. It rose by 2.4% to close at $48.90 per share on September 6, 2016.
Moody’s Upgrades Johnson Controls’ Senior Unsecured Rating
Johnson Controls (JCI) has a market cap of $28.1 billion. It fell by 0.34% to close at $43.88 per share on August 31, 2016.
Johnson Controls’ New Contract with Methodist Healthcare
Johnson Controls (JCI) has a market cap of $28.2 billion. It fell by 1.8% to close at $44.27 per share on August 24, 2016.
Johnson and Tyco Shareholders Approved Merger
Johnson Controls (JCI) has a market cap of $28.7 billion. It rose by 0.43% to close at $44.32 per share on August 17, 2016.
How Did Johnson Controls Perform in 3Q16?
Johnson Controls reported 3Q16 net sales of $9.5 billion, a fall of 1.0% compared to net sales of $9.6 billion in 3Q15.
What Could Turn around a Dull 2016 for the Invesco American Franchise Fund?
The Invesco American Franchise Fund Class A has fallen by 0.5% YTD in 2016—a below-average performer among the pack of 12 funds in our review.
Johnson Controls Declares $0.29 Per Share Dividend
Johnson Controls (JCI) has a market cap of $28.8 billion. It rose by 0.29% to close at $44.32 per share on July 20, 2016.
Other Defense Majors Made for Better 2016 Picks Than Raytheon
Raytheon (LMT) has managed to beat consensus EPS (earnings per share) as well as revenue estimates seven times in the last eight quarters.
Analysts’ Thoughts on Raytheon Stock ahead of Its 2Q16 Earnings
The consensus rating among the 19 analysts covering Raytheon (RTN) hasn’t changed so far in 2016. The stock has 14 “buy” ratings and five “neutral” ratings.
Raytheon Still Hopeful about Its German Patriot Deal
The US government gave a green light to Raytheon (RTN) in 2015 to export its 360-degree Gallium Nitride Active Electronically Scanned Array radar to 13 partner countries.
Johnson Controls Settles Its Bribe Charges
Johnson Controls (JCI) rose by 0.32% to close at $43.98 per share during the second week of July 2016.
Johnson Controls and Its Plan to Build a Battery Plant
Johnson Controls (JCI) rose by 0.09% to close at $44.46 per share at the end of the second week of June 2016.
Jeffrey Gundlach Thinks that Donald Trump Would Win
At the recent Sohn Investment Conference, Jeffrey Gundlach of DoubleLine Capital expressed his belief that Donald Trump would win the presidency.
What Does Boeing’s Current Valuation after 1Q16 Mean?
As of April 28, 2016, Boeing had a forward EV-to-EBITDA multiple of 8.26x. This is higher than its average valuation of 7.73x since February 2008.
What Does Boeing’s Current Valuation Indicate?
In the long term, valuation multiples will depend on Boeing’s ability to ramp up production if the 787 reduces its costs and improves its margins.
The Fidelity Magellan Fund: An Average Year until March 18
From a purely NAV (net asset value) return standpoint, the Fidelity Magellan Fund stood fifth in the one-year period ended March 18, 2016, among its peer group.
What Is Boeing’s Program Accounting Issue About?
Boeing (BA) uses program accounting, a technique that allows the company to spread out its huge manufacturing costs over time by cutting the cost per plane in the early stages of a project, and smoothening profit margins over time.
What Are Analysts Estimating for Boeing in 2016?
Of the 24 analysts rating Boeing’s stock, 62.5% (15 analysts) have a “buy” rating, 29.2% (seven analysts) have a “hold” rating, and 8.3% (two analysts) have a “sell” rating.
Industrial Sector ETF Rises by 1.23% on US Durable Goods Report
Investors and players in the industrial sector are keenly interested in the US durable goods report. Industrial sector firms rose on Wall Street July 29.
Will General Dynamics’ Strong Order Backlog Fuel the Future?
General Dynamics has a strong backlog. It ended its first quarter with a growth of 16% year-over-year in its funded backlog to $56 billion.
What Is Raytheon’s Space and Airborne Systems Segment?
Revenues for Raytheon’s Space and Airborne Systems segment declined in 2014 by 5%. This led to lower income and slight growth in margins.
A Look at Raytheon’s Missile Systems Segment
The year 2014 saw declines in sales and income for Raytheon’s Missile Systems segment. Sales declined due to production declines of land warfare systems programs.
Raytheon’s Intelligence, Information and Services Segment
The Intelligence, Information and Services segment was almost in line with last year. So were the operating income and margins, all of which saw marginal declines.
Raytheon Company’s Integrated Defense Systems
Raytheon’s Integrated Defense Systems segment saw marginally lower sales during the year due to lower sales across most of its major programs such as the Patriot program.
A Look at Raytheon’s 2014 Financial Performance
Raytheon Company’s (RTN) 2014 financial performance saw declines across all its key indicators such as sales, income, and EPS (earnings per share).
Raytheon Company: An Introduction
Raytheon is a global technology leader and US defense contractor. It primarily develops and manufactures weapons and military and commercial electronics.
Comparing Boeing’s Valuation to Its Peers
Boeing is the largest company by market capitalization among our selected peers, while Bombardier is the smallest.
A Look at Boeing’s Defense, Space, and Security Segment
BDS, Boeing’s oldest segment, designs, produces, modifies, and supports military fixed-wing aircraft, rotorcraft, weapons, and satellite systems.
The Boeing Company: From the Beginning
Boeing is the world’s largest aerospace company. It is the largest commercial jet manufacturer in the US and the world’s second largest behind Airbus.
Is Raytheon an Attractive Investment Option?
An investment in Raytheon stock would have generated about 94% returns in the past five years. This is just slightly more than the 88% returns from the S&P Index.
What Are Raytheon’s Growth Opportunities?
With more cyberattacks, the government is expected to increase its defense spending soon. Raytheon appears to be a promising beneficiary.
What Are Raytheon’s Strengths and Weaknesses?
Raytheon (RTN) is a global leader in defense and government solutions. It has more than 15,000 individual contracts. The company is a strong contractor for the US government.
What Can Investors Expect from Raytheon Next Year?
Similar to some of its competitors, Raytheon also issued a weak outlook for the coming year. Its 2015 outlook expects the revenue to be $2.3–$22.8 billion.
Raytheon’s Space and Airborne Systems Segment’s Performance
Raytheon’s Space and Airborne Systems, or SAS, fourth quarter performance was a mixed bag. The segment saw growth in revenue and its operating margins.
Raytheon’s Missile Systems Segment’s Financial Performance
Raytheon’s Missile Systems segment had good growth in 4Q14. For the quarter, the net sales were $1,719 million. The net sales were up 5% YoY.
RTN’s Integrated Defense Systems Segment’s Financial Performance
Raytheon’s Integrated Defense Systems, or IDS, segment had a strong performance in 4Q14. The segment’s net sales were $1,627 million.
Raytheon’s Full-Year 2014 Performance Was Stagnant
Compared to a mixed fourth quarter performance, Raytheon’s full-year 2014 performance was disappointing. The revenue for the full-year 2014 was $22.8 billion.
What Should Investors Know About Raytheon?
Raytheon is a leading technology company. It provides products and services in the defense, civil, and security markets globally.
Analyzing Raytheon’s Strong Performance in 4Q14
Raytheon (RTN) is one of the leading contractors and aerospace companies in the US. It performed well in 4Q14. Its revenue grew substantially.