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Dow-30 component The Boeing Company (BA- Free Boeing Stock Report)has reported solid June-quarter financial results. Revenues at the world's largest aerospace/defense company were $24.8 billion, which was 1% higher than the year-earlier figure. On a GAAP basis, the bottom line was a deficit of $0.44, but that included a couple of sizable, one-time charges that we have excluded from our financial presentation. More specifically, Boeing reclassified some 787-related costs ($1.33 per share) and incurred $1.28 per share in charges on the 747 program. Meanwhile, the company sustained additional expenses ($0.62) toward its KC-46 Tanker program, which we have included in our earnings tally. All told, for the quarter, Boeing posted earnings of $2.17 a share, which was $0.03 below our estimate, but 38% higher, year over year. The investment community appeared pleased with the company's performance, and the stock price was up about 1.5% in pre-market trading following the news.

During the June quarter, the Commercial Airplanes division delivered a healthy 199 planes, two more than the year-earlier period. Margins at this division, however, were sharply lower due to higher research & development expenditures. On the bright side, Boeing booked 152 net orders during the quarter, and its backlog remains massive at about 5,700 planes valued at $417 billion.

The Defense, Space, & Security division performed relatively well. Although sales declined 5%, to $7.1 billion, the operating margin widened by 110 basis points, thanks to a better delivery mix. This segment's backlog now stands at $55 billion, of which 37% is earmarked for international customers.

Looking ahead, we are reiterating our 2016 share-net estimate of $8.80, which would represent a year-over-year gain of 18%. We think that Boeing's Commercial Aircraft division will continue to perform well and deliver more planes this year. What's more, additional bookings should be on the horizon, thanks to a number of airlines now being on better financial footing due to reduced fuel prices and vigorous demand for flights. Against this backdrop, more carriers will probably look to replace their aging fleets with technologically advanced Boeing aircraft.

As for the stock, we continue to view Boeing as a core holding that would fit nicely in most portfolios. The issue is currently trading modestly below its 52-week high, which, in our view, makes the present price level a good entry point for buy-and-hold investors.

About The Company: The Boeing Company is a leading manufacturer of commercial jet aircraft. It also produces fighters (F-15, F/A-18), C-17 cargo carrier, V-22 helicopter, E-3 AWACS, E-4 command post, E-6 submarine communicator, ground transportation systems, develops the space station, and does work on the F-22 (ATF). In 2015, foreign sales accounted for 59% of overall revenues, and R&D amounted to 3.4% of sales.

At the time of this article’s writing, the author did not have positions in any of the companies mentioned.