Boeing Closes Largest Order in Its History

The Boeing Company (NYSE:BA) recently announced its biggest order in its history. The company has received an order for 201 model 737 max jets and 29 model 737-900 extended range jets from Lion Air of Jakarta.

The total number of aircrafts total to 230 planes, proceeds from which stands at $22.4 billion. This figure sure is very overwhelming for the company despite the fact that price also includes discounts as the purchase is in bulk. Lion Air is also considering for purchasing of another 150 planes from Boeing. The proceeds from this deal only surpass the revenue figure of its last quarter in which the company generated the sales of $19.55 billion for the three months ending December 2011.

Boeing’s share price jumped on the news however today closed $75.21 below 0.46 percent. The traded volume stood at 4.25 million shares as compared to its average volume figure of 4.83 million shares per day. The share price is currently trading at a price to earnings of 14.14 times which seems reasonable if compared to its industry peers. Lockheed Martin is trading at price to earnings of 11.14 times while Embraer SA’s price to earnings stands at 16.95 times.

Considering the deal high substantial increase in revenue in profitability is expected for the coming quarters which could also have a positive effect on the Boeing’s P/E.

Previous Post »  
Tags: , ,
Alan Smalling

About Alan Smalling

Alan is the latest addition to our news and development team. He has worked with Pete previously on other financial websites. When we can keep him at low altitude, his contributions will mainly be focused on company news and new product launches.

Comments are closed.