We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing (BA) to Supply 5 777-8 Freighters to Ethiopian Airlines
Read MoreHide Full Article
The Boeing Company (BA - Free Report) recently signed a Memorandum of Understanding (MoU) with Ethiopian Airlines involving the supply of five of its 777-8 Freighters. The MoU thus further strengthens the U.S. aerospace giant’s alliance with its long-standing aviation partner, Ethiopian Airlines.
Impressively, since its launch this January, Boeing's 777-8 Freighter aircraft has booked 34 firm orders.
Importance of the 777-8 Freighter Aircraft
Boeing’s 777-8 Freighter is the largest, longest-range and most capable twin-engine freighter in the industry. With the payload capacity nearly identical to the 747-400 Freighter and a 25% improvement in fuel efficiency, emissions and operating costs, the 777-8 Freighter has the capability to offer a more sustainable and profitable business for operators.
Boeing’s Growth Prospects
Globally, the freighter market has been witnessing strong demand, buoyed by the rising e-commerce trend and the air cargo market. In this context, it is imperative to mention that BA, a leader in manufacturing freighters, enjoys a dominant position due to its capability to enhance its products with the latest technologies.
To meet the growing global demand for cargo, Ethiopian Airlines aims at aggressively expanding its cargo business, thereby becoming one of the leading multimodal logistics providers worldwide. Such long-term growth projections open avenues for Boeing to win more such orders like the latest one. This, in turn, is likely to boost its revenues from the freighters arena.
Boeing anticipates 4% annual average traffic growth, along with a proven need for dedicated freighter capacity, to lead to more than 60% growth in freighters over the next two decades. Further, BA expects to make 2,430 freighters delivery by 2039. This exhibits Boeing’s strong growth prospects in the freighter aircraft arena going forward.
Opportunities for a Peer
The aforementioned prospects of the global freighter market also offer growth opportunities for another aerospace major, Airbus SE (EADSY - Free Report) .
Airbus’ freighter and cargo jets fleet mainly comprise A330-200F, A321P2F, A330P2F BelugaST and BelugaXL. The newest addition is the A350F, equipped with the latest-generation innovation from the A350. The freighter also bears features that reduce fuel burn and CO2 emissions. The A330-200F is a new-generation cargo aircraft that meets the freight business’ requirements in the mid-size and long-haul segments.
Moreover, the A330P2F and A321P2F are passenger aircraft converted to freighters, providing a cost-effective and highly efficient option to customers. The Zacks Consensus Estimate for Airbus’ 2022 sales indicates a growth rate of 9.7% from the prior-year figure.
Price Performance
Shares of Boeing have plunged 19.3% in the past year compared with the industry’s decline of 27.9%.
Embraer boasts long-term earnings growth of 17%. The Zacks Consensus Estimate for Embraer’s 2021 earnings suggests solid growth of 86.5% from the prior year’s reported figure.
The Zacks Consensus Estimate for ERJ’s 2021 sales implies growth of 16.5% from the prior-year figure. It has a four-quarter earnings surprise of 42.21%. Embraer has returned 54.3% to its investors in the past year.
The Zacks Consensus Estimate for Huntington Ingalls’ 2022 earnings suggest growth of 14.1% from the prior-year figure. Huntington Ingalls has returned 14.1% to its investors in the past year.
HII has a four-quarter earnings surprise of 22.22%. The Zacks Consensus Estimate for Huntington Ingalls’ 2021 sales imply growth of 13.9% from the prior-year figure.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Boeing (BA) to Supply 5 777-8 Freighters to Ethiopian Airlines
The Boeing Company (BA - Free Report) recently signed a Memorandum of Understanding (MoU) with Ethiopian Airlines involving the supply of five of its 777-8 Freighters. The MoU thus further strengthens the U.S. aerospace giant’s alliance with its long-standing aviation partner, Ethiopian Airlines.
Impressively, since its launch this January, Boeing's 777-8 Freighter aircraft has booked 34 firm orders.
Importance of the 777-8 Freighter Aircraft
Boeing’s 777-8 Freighter is the largest, longest-range and most capable twin-engine freighter in the industry. With the payload capacity nearly identical to the 747-400 Freighter and a 25% improvement in fuel efficiency, emissions and operating costs, the 777-8 Freighter has the capability to offer a more sustainable and profitable business for operators.
Boeing’s Growth Prospects
Globally, the freighter market has been witnessing strong demand, buoyed by the rising e-commerce trend and the air cargo market. In this context, it is imperative to mention that BA, a leader in manufacturing freighters, enjoys a dominant position due to its capability to enhance its products with the latest technologies.
To meet the growing global demand for cargo, Ethiopian Airlines aims at aggressively expanding its cargo business, thereby becoming one of the leading multimodal logistics providers worldwide. Such long-term growth projections open avenues for Boeing to win more such orders like the latest one. This, in turn, is likely to boost its revenues from the freighters arena.
Boeing anticipates 4% annual average traffic growth, along with a proven need for dedicated freighter capacity, to lead to more than 60% growth in freighters over the next two decades. Further, BA expects to make 2,430 freighters delivery by 2039. This exhibits Boeing’s strong growth prospects in the freighter aircraft arena going forward.
Opportunities for a Peer
The aforementioned prospects of the global freighter market also offer growth opportunities for another aerospace major, Airbus SE (EADSY - Free Report) .
Airbus’ freighter and cargo jets fleet mainly comprise A330-200F, A321P2F, A330P2F BelugaST and BelugaXL. The newest addition is the A350F, equipped with the latest-generation innovation from the A350. The freighter also bears features that reduce fuel burn and CO2 emissions. The A330-200F is a new-generation cargo aircraft that meets the freight business’ requirements in the mid-size and long-haul segments.
Moreover, the A330P2F and A321P2F are passenger aircraft converted to freighters, providing a cost-effective and highly efficient option to customers. The Zacks Consensus Estimate for Airbus’ 2022 sales indicates a growth rate of 9.7% from the prior-year figure.
Price Performance
Shares of Boeing have plunged 19.3% in the past year compared with the industry’s decline of 27.9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Boeing currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the sameindustryare Embraer S.A. (ERJ - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Embraer boasts long-term earnings growth of 17%. The Zacks Consensus Estimate for Embraer’s 2021 earnings suggests solid growth of 86.5% from the prior year’s reported figure.
The Zacks Consensus Estimate for ERJ’s 2021 sales implies growth of 16.5% from the prior-year figure. It has a four-quarter earnings surprise of 42.21%. Embraer has returned 54.3% to its investors in the past year.
The Zacks Consensus Estimate for Huntington Ingalls’ 2022 earnings suggest growth of 14.1% from the prior-year figure. Huntington Ingalls has returned 14.1% to its investors in the past year.
HII has a four-quarter earnings surprise of 22.22%. The Zacks Consensus Estimate for Huntington Ingalls’ 2021 sales imply growth of 13.9% from the prior-year figure.