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Analyst raises earnings forecast for Boeing

An analyst raised his earnings forecast for Boeing Co. on Monday, noting progress on the airplane manufacturer’s deliveries of its newest plane.

Sterne Agee analyst Peter Arment estimates that Boeing delivered about 148 aircraft in the quarter that ended Friday, topping his estimates. Twelve of those are the new 787, according to Arment estimates. After years of delays, Boeing recently began delivering a handful of the planes, which it calls the Dreamliner, every month.

Airlines around the world have placed more than 800 firm orders for the new 787. United last week became the first U.S. airline to get the plane.

Arment expects the swift delivery pace to continue this month, with between 8 and 10 deliveries of the 787. He raised his third-quarter earnings estimate by 8 percent, putting it above the average current expectation on Wall Street.

The analyst thinks that solid third-quarter results and the start of a stock buyback program will boost Boeing’s stock in the near future. Growth in the stock is lagging improvement in the S&P 500, which gives it some room to grow on the heels of improved earnings. The company has $3.5 billion left in stock purchase authorizations, which is equivalent to about 6 percent of its outstanding shares, Arment said.

Boeing shares are up 40 cents to $70 in premarket trading. The stock has traded between $56.90 almost a year ago and $77.83 per share in early May.

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