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Boeing Suppliers Not Chasing Boeing News (BA, SPR, BEAV, HON, COL, LMIA, TIE, PCP, GE, ETN, PH, BW)

247wallst — Thu, 27 Aug 2009 15:15:25 +0000

This morning’s news out of Being Co. (NYSE: BA) about the 787 Dreamliner setting a maiden flight date before the end of this year and scheduling preliminary deliveries into Q4-2010 is really getting the love put back into Boeing shares. In mid-morning trading the stock is actually up over 7% or $3.50 at $51.32 and it has already seen its average daily volume surpassed. But where this gets interesting is that so many of the key Boeing suppliers for the 787 Dreamliner are trading down. Precision Castparts (NYSE:PCP) and Spirit Aerosystems (NYSE:SPR) are both up significantly with the news and Rockwell Collins (NYSE:COL) is up, but the rest of the lot is either up marginally or is trading lower with the overall market.

Spirit Aerosystems (NYSE:SPR) is the ex-Boeing unit, which makes fuselage parts; its shares are up 7.5% at $15.85.
BE Aerospace (NASDAQ:BEAV) has cabin and seating contracts with Boeing; its shares are up 0.1% at $17.65 on low volume.
Honeywell (NYSE:HON) has the cockpit award; its shares are up 0.25% at $37.21.
Rockwell Collins (NYSE:COL) has information management pacts with Boeing; its stock is up 2.5% at $46.15 but not on active trading volume.
LMI Aerospace (NASDAQ:LMIA) has Boeing as principal customer for structural components, assemblies, and kits; its stock is up 2% at $9.21 but on very thin trading volume.
Titanium Metals (NYSE:TIE) has long-term Boeing titanium/metals supply pacts; is down some 0.6% at $8.01.
Precision Castparts (NYSE:PCP) manufactures aerospace structural castings, aerospace airfoil castings, industrial gas turbine castings; this winner is up 7.7% at $93.50 on the news.

General Electric Co. (NYSE: GE) is too diversified to be a single news reaction-event stock has engine exposure here with the GEnx, but its stock is down 0.8% at $14.00 along with the broader market. Elsewhere…. Eaton Corp. (NYSE: ETN) is down 1.6% at $54.47, Parker Hannifin Corp. (NYSE: PH) is down 1.4% at $49.07, and Brush Engineered Materials (NYSE: BW) is down over 4% at $22.15.

The DJIA, which Boeing is a component of, is down some 77 points at around 9,465….. Boeing is currently only one of 2 of the 30 DJIA components up late this morning. If it were not for this rise in Boeing, the DJIA would be down closer to triple-digits.

JON C. OGG
August 27, 2009

Posted in Aerospace, Trading Alert, Transports Tagged: BA, BEAV, BW, COL, ETN, GE, HON, LMIA, PCP, PH, SPR, TIE

Top Pre-Market Analyst Downgrades (ALU, BRLI, GPS, GD, PCK, PSO, PAS, PTR, PKX, RTP, COL, WXS)

247wallst — Fri, 09 Jan 2009 07:17:48 +0000

The rate of downgrades versus upgrades is still coming out with a much more negative bias from Wall Street. These are some of the downgrades and negative research calls we have seen from Wall Street analysts this Friday morning:

Alcatel-Lucent (NYSE: ALU) Cut to Equal Weight at Morgan Stanley.
Bio-Reference Labs (NASDAQ: BRLI) Cut to Perform at Oppenheimer.
Gap Inc. (NYSE: GPS) Cut to Hold at Citigroup.
General Dynamics (NYSE: GD) Cut to Neutral at Goldman Sachs.
Patriot Coal (NYSE: PCX) Started as Sell at Citigroup.
Pearson (NYSE: PSO) Cut to Sell at Goldman Sachs.
PepsiAmericas (PAS) Cut to Sell at Goldman Sachs.
PetroChina (NYSE: PTR) Cut to Neutral at JPMorgan.
Posco (NYSE: PKX) Cut to Neutral at Goldman Sachs.
Rio Tinto (NYSE: RTP) Cut to Hold at Deutsche Bank.
Rockwell Collins (NYSE: COL) Cut to Sell at Goldman Sachs.
Wright Express Corp. (NYSE: WXS) Cut to Neutral at JPMorgan.

Jon C. Ogg
January 9, 2009

Posted in Analyst Calls Tagged: ALU, BRLI, COL, GD, GPS, PAS, PCK, PKX, PSO, PTR, RTP, WXS

War & Defense Earnings Galore (LMT, BA, GD, LLL, RTN, COL, CRDN)

247wallst — Mon, 21 Apr 2008 12:56:49 +0000

This week is going to be the key earnings reporting week for companies tied to aerospace and defense sector stocks. If there is one area that everyone is expecting to hold up, it is this one. The recessionary climate has only just started and this one is supposed to be immune in the current environment. Keep in mind that some of these companies have diversified away from being a pure war and defense sector, but these are still defense companies.

On Tuesday we’ll get to see earnings out of Lockheed Martin Corporation (NYSE: LMT), and on Wednesday we’ll see results from Boeing Co. (NYSE: BA) and General Dynamics Corp. (NYSE: GD). Then on Thursday, we’ll see results from L-3 Communications Holdings Inc. (NYSE: LLL), Raytheon Co. (NYSE: RTN), and also from Rockwell Collins Inc. (NYSE: COL). Ceradyne Inc. (NASDAQ: CRDN) is on the docket for Friday.

The full previews can be seen as follows:

Tuesday we’ll get to see earnings out of Lockheed Martin Corporation(NYSE: LMT). The estimates for the engineering firm from First Call are$1.63 EPS on $9.69 billion in revenues. Next quarter estimates are$1.86 EPS on $10.82 million in revenues. Estimates for fiscal Dec-2008are $7.37 EPS on $42.84 million in revenues. Analysts have an averageprice target north of $119.00, and Lockheed Martin’s 52-week tradingrange is $88.86 to $113.74.

Wednesday we’ll get to see earnings out of Boeing Co. (NYSE: BA). Theestimates for the engineering firm from First Call are $1.35 EPS on$16.52 billion in revenues. Next quarter estimates are $1.47 EPS on$17.30 billion in revenues. Estimates for fiscal Dec-2008 are $5.93 EPSon $68.95 billion in revenues. Analysts have an average price targetnorth of $89.00, and Boeing’s 52-week trading range is $71.59 to$107.83.

Wednesday we’ll get to see earnings out of General Dynamics Corp.(NYSE: GD). The estimates for the engineering firm from First Call are$1.29 EPS on $6.89 billion in revenues. Next quarter estimates are$1.39 EPS on $7.16 billion in revenues. Estimates for fiscal Dec-2008are $5.75 EPS on $29.52 billion in revenues. Analysts have an averageprice target north of $96.00, and General Dynamics’ 52-week tradingrange is $70.61 to $94.55.

Thursday we’ll get to see earnings out of L-3 Communications HoldingsInc. (NYSE: LLL). The estimates for the communications company fromFirst Call are $1.51 EPS on $3.52 billion in revenues. Next quarterestimates are $1.58 EPS on $3.51 billion in revenues. Estimates forfiscal Dec-2008 are $6.58 EPS on $14.45 billion in revenues. Analystshave an average price target north of $120.00, and L-3 Communications’52-week trading range is $88.80 to $15.29.

Thursday we’ll get to see earnings out of Raytheon Co. (NYSE: RTN). Theestimates for the technology company from First Call are $0.84 EPS on$5.12 billion in revenues. Next quarter estimates are $0.95 EPS on$5.61 billion in revenues. Estimates for fiscal Dec-2008 are $3.89 EPSon $22.82 billion in revenues. Analysts have an average price targetnorth of $72.00, and Raytheon’s 52-week trading range is $52.28 to$67.49.

Thursday we’ll get to see earnings out of Rockwell Collins Inc. (NYSE:COL). The estimates for the communication and aviator manufacturer fromFirst Call are $0.99 EPS on $1.17 billion in revenues. Next quarterestimates are $1.00 EPS on $1.21 billion in revenues. Estimates forfiscal Sept-2008 are $4.00 EPS on $4.80 billion in revenues. Analystshave an average price target of $75.00, and Rockwell Collins’ 52-weektrading range is $53.24 to $76.00.

Friday we’ll get to see earnings out of Ceradyne Inc. (NASDAQ: CRDN).The estimates for the communication and aviator manufacturer from FirstCall are $1.13 EPS on $185.80 million in revenues. Next quarterestimates are $1.11 EPS on $181.83 million in revenues. Estimates forfiscal Dec-2008 are $4.62 EPS on $749.61 million in revenues. Analystshave an average price target north of $46.00, and Ceradyne’s 52-weektrading range is $27.77 to $84.41.

Jon C. Ogg
April 21, 2008

Suppliers Feel More Boeing 787 Delays (BA, SPR, BEAV, HON, COL, LMIA, TIE, PCP)

247wallst — Tue, 15 Jan 2008 15:05:06 +0000

The Wall Street Journal has announced that there may be (actually it says "near announcing") some new delays out of Boeing (NYSE: BA) on its 787 Dreamiliner. We first noted that the Boeing suppliers were likely to be under pressure back on OCTOBER 10, 2007 on word of the first real delays in the Dreamliner.

Here is a snapshot of some of the many suppliers for Boeing, with some price comparisons:

Spirit Aerosystems (NYSE:SPR) is the ex-Boeing unit, which makes fuselage parts: stock price on October 10 after the first Boeing delay: $36.50. Share price today: $26.12 (-7%).
BE Aerospace (NASDAQ:BEAV) has cabin and seating contracts with Boeing; Stock price on October 10 after the first Boeing delay: $43.30. Share price today: $40.10 (-3%).
Honeywell (NYSE:HON) has the cockpit award; Stock price on October 10 after the first Boeing delay: $60.00. Share price today: $56.69 (-1.9%).
Rockwell Collins (NYSE:COL) has information management pacts with Boeing; Stock price on October 10 after the first Boeing delay: $73.35. Share price today: $65.10 (-2.4%).
LMI Aerospace (NASDAQ:LMIA) has Boeing as principal customer for structural components, assemblies, and kits; Stock price on October 10 after the first Boeing delay: $27.65. Share price today: $22.97 (-1%).
Titanium Metals (NYSE:TIE) has long-term Boeing titanium/metals supply pacts; Stock price on October 10 after the first Boeing delay: $33.29. Share price today: $23.45 (-4.7%).
Precision Castparts (NYSE:PCP) manufactures aerospace structural castings, aerospace airfoil castings, industrial gas turbine castings; Stock price on October 10 after the first Boeing delay: $146.75. Share price today: $118.64 (-4.7%).

Shares of Boeing had been down in a weak market today, but shares rolled over on this announcement and are now down almost 3% to $79.27. Its 52-week trading range is $77.81 to $107.83, and it closed at $98.33 back on October 10, 2007 when the first real delay came about. The bulls look like they are going to have to hope the company refutes that delays will be anything significant. Imagine if things get bad enough that some airlines start actually canceling or trimming orders.

Jon C. Ogg
January 15, 2008

Pre-Market Stock News (November 14, 2007)

247wallst — Wed, 14 Nov 2007 08:19:45 +0000

Below is some of the top news pre-market:

Applied Materials (AMAT) reports earnings after close; estimates are $0.29 EPS & R$2.38B.
BEA Systems (BEAS) said it expects to submit SEC filings tomorrow to regain compliance.
Canadian Solar (CSIQ) trading up over 25% after beating earnings and raising guidance.
CDC Corp. (CHINA) announced that its CDC Software expects record revenues this quarter.
E*Trade (ETFC) trading up another 3% pre-market.
GigaMedia (GIGM) $0.17 EPS vs $0.14 est.
HSBC Holdings plc (HBC) taking a $3.4 Billion charge on bad loans in U.S.
Meridian BioScience (VIVO) $0.16 EPS vs $0.15 est.
MetroPCS (PCS) $0.15 EPS vs $0.13 est.
Northstar Neuroscience (NSTR) now expects to unblind EVEREST data and announce primary endpoint results in Jan-2008 and submit PMA early in Q2-2008; for stroke motor recovery and its planned PMA submission; after FDA communications.
Pepsico (PEP) reaffirmed guidance of $3.39 EPS for 2007 and cash flows of $7 Billion.
Qualcomm (QCOM) hosts its analyst day, Dutch court dismissed one of Nokia’s patent claims against Qualcomm; announced acquisition of Firethorn for mobile banking.
Rigel Pharms (RIGL) said that Merck-Serono exercised an option to R763/AS703569 and Aurora Kinase inhibitors in Japan.
Rockwell Collins (COL) increased its buyback plan by $300 million.
Taser (TASR) reported 3 large orders that will ship this quarter.

Jon C. Ogg
November 14, 2007

Jon Ogg produces the 24/7 Wall St. Special Situation Investing Newsletter; he does not own securities in the companies he covers.

Boeing Design Partners Getting Whacked (SPR, BEAV, HON, COL, LMIA, TIE, PCP)

247wallst — Wed, 10 Oct 2007 12:13:11 +0000

Shares of Boeing (NYSE:BA) are getting hit hard after the jet-maker and aerospace giant finally came clean about the delay of the Dreamliners. The DJIA component is down 3% on the day and it has pulled the price-weighted DJIA down a bit more with it. We have covered this wondering about the first flight delays having a cascading effect, but if you look at Boeing’s aerospace partners on the Dreamliner you will see that they are all being hit (and some even harder than Boeing):

Spirit Aerosystems (NYSE:SPR) is the ex-Boeing unit, which makes fuselage parts, shares down 4.8% to $36.50.
BE Aerospace (NASDAQ:BEAV) has cabin and seating contracts with Boeing, shares down almost 4% at $43.30.
Honeywell (NYSE:HON) has the cockpit award, shares down 2% at $60.00.
Rockwell Collins (NYSE:COL) has information management pacts with Boeing, shares down 3.3% at $73.35.
LMI Aerospace (NASDAQ:LMIA) has Boeing as principal customer for structural components, assemblies, and kits, shares down 3.5% at $27.65.
Titanium Metals (NYSE:TIE) has long-term Boeing titanium/metals supply pacts; shares down 1.7% at $33.29.
Precision Castparts (NYSE:PCP) manufactures aerospace structural castings, aerospace airfoil castings, industrial gas turbine castings, shares down 3.4% at $146.75.

There are other stocks that will be affected and impacted by this, but now the game is to figure out which of these companies will have to preannounce that the Dreamliner delay will hurt their earnings for one to two quarters out.

Jon C. Ogg
October 10, 2007

Jon Ogg produces the Special Situation Investing Newsletter and does not own securities in the companies he covers.