Boeing Wins $43M Deal to Provide Edge Flaps for F/A-18 Jets
The Boeing CompanyBA recently secured a $42.9-million contract to procure 48 trailing edge flaps for the F/A-18 aircraft. The contract was awarded by the Naval Air Systems Command, Patuxent River, MD.
Majority of the work related to this deal will be performed in St. Louis, MI, and the entire task is expected to get completed by June 2021.
Rising Demand of Boeing’s of F/A-18
Boeing continues to witness solid demand for its fighter aircraft and major aerospace programs, including the F-18. This is evident from a $41-million contract recently acquired by the company to provide 2,763 pieces of support equipment, spares and test equipment for the maintenance and repair of the F/A-18E/F aircraft. Also, a couple of months back, Boeing secured a $36.8-million contract to support the F/A-18 aircraft’s Return-to-Readiness Initiative. Such contract wins are likely to augment revenues for the company.
What Favors Boeing’s Defense Business?
Increasing geo-political tensions across the globe, especially the Middle East region, are prompting nations to strengthen their defense systems manifold. Evidently, the demand for fighter jets and other critical defense products keeps growing. Boeing, being a defense giant itself, has been benefiting from such increasing demand in the form of solid contract wins like the latest one.
Considering the growing demand for defense products, the Trump administration has been continuously supporting the U.S. defense sector by increasing the nation’s defense budget, with particular focus on combat aircraft. Evidently the U.S. government’s proposed fiscal 2020 defense budget includes a spending plan of $57.7 billion on aircraft, a massive increase of 166% from the approved fiscal 2019 defense spending. If approved, this increased spending provision should usher in more contracts for Boeing’s aircraft program.
Shares of the company have gained 6.4% in the past one year compared with the industry ‘s growth of 8%.
Wesco Aircraft’s long-term growth estimates currently stand at 12%. The Zacks Consensus Estimate for 2019 earnings has increased 1.2% to 84 cents in the past 60 days.
Northrop Grumman came up with average positive earnings surprise of 18.50% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has increased 0.62% to $19.41 in the past 60 days.
Textron came up with average positive earnings surprise of 7.62% in the last four quarters. The company’s long-term growth estimates currently stand at 12.6%.
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