Company News

BUZZ-Boeing: Takes flight after results, forecast ease worries

** Shares of Boeing up 2.6 pct premarket, set to add to current YTD gains of 11.6 pct

** BA’s Q1 EPS handily beat expectations, while core margins rise, and planemaker also raises its FY EPS, cash flow and commercial airplanes margin forecasts

** Results come after Caterpillar’s shares tumbled and weighed on other industrials on Tuesday after warning rising materials costs could squeeze its profit margins

** Also Tues, BA rival Lockheed Martin sank 6 pct after only reaffirming its FY cash flow projection

** Northrop Grumman dips 0.4 pct in thin premarket trading after hiking its FY EPS forecast but only maintaining its cash flow outlook

** Raytheon Co, which is to report Thursday, is little changed premarket; LMT up 0.5 pct

** BA is the 2nd best performing Dow Industrial this year and in its peer group trails only Bombardier’s ~32 pct, RTN’s 16.5 pct and Airbus’s 14.6 pct gains

** BA though is slightly more expensive than most of its peers, trading at ~22x NTN PE; Bombardier is the only one more expensive at nearly 34x, while Airbus trades at ~20x

** BA’s div yield of 2.1 pct is higher than Airbus and trails only BAE Systems’s 3.5 pct and Lockheed’s 2.4 pct (Reporting by Savio D’Souza)