"Up here in space, I'm looking down on you; My lasers trace everything you do." Judas Priest, "Electric Eye"
The jury is still out as to whether or not DigitalGlobe (DGI)
can build a strong business in satellite imaging outside of government
defense and intelligence contracts. The integration of the company's
merger with GeoEye already appears ahead of schedule, and not unlike the
merger that created Sirius XM Radio (SIRI),
I expect the combined entity to be stronger and more profitable than
either of its constituent parts would be on their own. Even so, getting
companies in industries like oil/gas, mining, and agriculture is going
to be the factor in whether investors' solid enthusiasm for these shares
in 2013 pays off down the road.
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DigitalGlobe Hopes A Near-Monopoly In Satellite Imaging Pays Off
Showing posts with label EADS. Show all posts
Showing posts with label EADS. Show all posts
Tuesday, September 17, 2013
Friday, December 14, 2012
Investopedia: Will This Aerospace Cycle Finally Let Hexcel Take Off?
It may sound contradictory, but Wall Street is often both predictive and
reactive. To that end, the stock of carbon fiber specialist Hexcel (NYSE:HXL)
has done pretty well since 2009 on the basis of investor expectations
for more composite material content in commercial aerospace. At the same
time, though, it's well worth remembering that Hexcel has struggled to
deliver consistent, impressive margins and returns on capital. If Hexcel
can't find a way to establish better peak earnings and cash flow potential, it may be difficult for these shares to outperform.
Please click below for more:
http://www.investopedia.com/
Please click below for more:
http://www.investopedia.com/
Monday, April 30, 2012
Investopedia: Orders Will Be The Wind Beneath Boeing's Wings
The run in commercial aerospace is on, and both Boeing (NYSE:BA) and EADS'
Airbus will be spending the next few years delivering on an incredible
backlog of commercial aviation orders. While there is still some reason
to worry about the quality of the emerging market order book, Boeing has
a rare opportunity to book several banner years of revenue and cash flow.
Read more here:
http://stocks.investopedia.
Read more here:
http://stocks.investopedia.
Monday, January 31, 2011
Investopedia: Honeywell Looking Sweet
Although conglomerates do not always get the benefit of the doubt, Honeywell (NYSE:HON) is showing some of the benefits of managing a broad base of unrelated businesses. Not all of Honeywell's businesses are running hot right now, but the company has a good spread of businesses exposed to the early, middle and late phases of the economic cycle. Honeywell does not have the best growth top-line growth outlook on the Street, nor the best free cash flow margin, but investors should not be quick to ignore this name.
The Quarter That Was
Analysts have been in a rush lately to raise their estimates on Honeywell, but the company nevertheless surpassed expectations for the fourth quarter. Revenue jumped 12% in the quarter, with organic growth clocking in at an impressive 10% clip. Within the company's segments, Honeywell's largest business (automation/control) was one of the strongest as revenue grew 15% to over $3.9 billion. Transportation was even stronger at 18% growth, while specialty materials grew 12% and aerospace brought up the rear with 6% growth.
The profit side of the income statement was a little harder to evaluate. Gross margin was quite a bit better than last year, expanding almost 340 basis points. Unfortunately, both gross margin and operating margin are impacted by various costs like "repositioning." Consequently, segment operating profit rose just 4% for the quarter, but the company's operating leverage is not as weak as that suggests. (For more, see Honeywell's 2011 Outlook.)
The Look Ahead
Honeywell has been maintaining pretty solid free cash flow production even despite a relatively mediocre environment in the commercial aerospace industry, particular the segment of the marketing targeting larger jets (where Honeywell is relatively stronger). Eventually Boeing (NYSE:BA) and EADS will figure it out, though, and companies like Honeywell, United Technologies (NYSE:UTX), Rolls Royce and General Electric (NYSE:GE) can go back to beating up on each other with the backdrop of a healthier overall environment. Given that aerospace produces the highest operating margins for the company, that is clearly something that Honeywell needs to happen.
Please follow this link for the full story:
http://stocks.investopedia.
The Quarter That Was
Analysts have been in a rush lately to raise their estimates on Honeywell, but the company nevertheless surpassed expectations for the fourth quarter. Revenue jumped 12% in the quarter, with organic growth clocking in at an impressive 10% clip. Within the company's segments, Honeywell's largest business (automation/control) was one of the strongest as revenue grew 15% to over $3.9 billion. Transportation was even stronger at 18% growth, while specialty materials grew 12% and aerospace brought up the rear with 6% growth.
The profit side of the income statement was a little harder to evaluate. Gross margin was quite a bit better than last year, expanding almost 340 basis points. Unfortunately, both gross margin and operating margin are impacted by various costs like "repositioning." Consequently, segment operating profit rose just 4% for the quarter, but the company's operating leverage is not as weak as that suggests. (For more, see Honeywell's 2011 Outlook.)
The Look Ahead
Honeywell has been maintaining pretty solid free cash flow production even despite a relatively mediocre environment in the commercial aerospace industry, particular the segment of the marketing targeting larger jets (where Honeywell is relatively stronger). Eventually Boeing (NYSE:BA) and EADS will figure it out, though, and companies like Honeywell, United Technologies (NYSE:UTX), Rolls Royce and General Electric (NYSE:GE) can go back to beating up on each other with the backdrop of a healthier overall environment. Given that aerospace produces the highest operating margins for the company, that is clearly something that Honeywell needs to happen.
Please follow this link for the full story:
http://stocks.investopedia.
Wednesday, December 8, 2010
Can Boeing Afford More Delays?
Patience in a funny thing. Everybody wants a job to be done right, but they also want it done on a timescale that at least approximates the original estimates. Customers appreciate that Boeing (NYSE:BA) is attempting to do something quite extraordinary with the 787 Dreamliner project, but if the company cannot ever deliver the plane, who cares how amazing it is?
More to the point - is Boeing running the risk of giving unintentional aid and comfort to emerging rivals? Should investors worry that Boeing's scale and technical expertise may all go for naught because the company was too ambitious and customers ultimately settle for lesser planes that rivals can actually deliver?
More Problems ... Again
Boeing has had no shortage of problems with this new 787 plane. Problems with the Rolls Royce engine (one of the two available; the other being offered by General Electric (NYSE:GE)) got a lot of attention, and now Boeing has suspended test flights after an onboard electrical fire. While the company has not formerly altered the expected initiation of deliveries in the middle of the first quarter of 2011, the Dreamliner is already three years behind schedule and more delays seem more likely than not.
Of course, these delays need to be kept in perspective. There has never been a plane quite like the Dreamliner, and the scale of the engineering challenges are enormous. On top of that, these planes may spend well more than 30 years in service and it is clearly important to get everything right ahead of time.
Please click below for the full piece:
http://stocks.investopedia.
More to the point - is Boeing running the risk of giving unintentional aid and comfort to emerging rivals? Should investors worry that Boeing's scale and technical expertise may all go for naught because the company was too ambitious and customers ultimately settle for lesser planes that rivals can actually deliver?
More Problems ... Again
Boeing has had no shortage of problems with this new 787 plane. Problems with the Rolls Royce engine (one of the two available; the other being offered by General Electric (NYSE:GE)) got a lot of attention, and now Boeing has suspended test flights after an onboard electrical fire. While the company has not formerly altered the expected initiation of deliveries in the middle of the first quarter of 2011, the Dreamliner is already three years behind schedule and more delays seem more likely than not.
Of course, these delays need to be kept in perspective. There has never been a plane quite like the Dreamliner, and the scale of the engineering challenges are enormous. On top of that, these planes may spend well more than 30 years in service and it is clearly important to get everything right ahead of time.
Please click below for the full piece:
http://stocks.investopedia.
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