Boeing Strong Positioning in the Aerospace Market.

Boeing released strong results for its first quarter fiscal year 2014 on Wednesday, and after the announcement of the results BA Stocks surged by 3% the same day. The analysts believe that BA Stocks might seem to be expensive at around 18x 2014 earnings but it is quite appropriate in terms of premium multiple. The performance of Boeing is mainly influenced by the airlines overall performance, if the airline industry performs well than it will have the purchasing power to buy new airplanes and for that they will consider Boeing first as it has been the most reliable company so far. The innovative airplanes of Boeing have become a significant part of the airline industry as the airplanes are quite fuel efficient. This makes perfect sense for the 5 years backlog of the company for upcoming years. The company’s positioning in the aerospace market is quite strong, that gives the company an edge to be profitable for the upcoming years. Boeing’s earning per share for the first quarter fiscal year 2014 was $1.76 higher than the expected per share earnings of $1.56 on revenues of $20 billion. The estimated revenues for the quarter were $100 million lower than the actual revenues generated by the company. Although the company has been facing quite a trouble in past one year, but still the revenues of the company was up by 8.3% year over year. The company’s core operating earnings were up around 12% up to $2.095 billion because of the company’s strong margins. The commercial division of Boeing’s performance was quite well for the quarter and the revenue increased by 19% with operating profits of 23%.