Boeing, Defense Stocks Soar On Saudi Deal

Mukesh Buch
22 May, 2017
New York City

Boeing signed defense and commercial agreements with Saudi Arabia. Booz Allen lifted revenue estimate. Energy XXI Gulf Coast net swung to a loss. Rocky Mountain Chocolate profit declined 22%.

[R]12:30 PM New York – Boeing signed defense and commercial agreements with Saudi Arabia. Booz Allen lifted revenue estimate. Energy XXI Gulf Coast net swung to a loss. Rocky Mountain Chocolate profit declined 22%.[/R]

Tollbooth Index increased 54.54 or 0.4% to 12,110.88.

Earnings Review

Boeing Co ((BA)) advanced 1.3% or $2.32 to $183.08 after the commercial and military aircraft maker said yesterday it signed several defense and commercial agreements with Saudi Arabia including for the sale of military and passenger aircraft.

The deal anticipated in the terms of tens of billions of dollars includes supply Chinook helicopters with support services, guided weapons systems, and the sale of P-8 surveillance aircraft.

However, the deal did not mention how many aircrafts Saudi Arabia intends to buy, but Boeing said it will negotiate for up to 16 wide body airplanes.

Booz Allen Hamilton Holding Corporation ((BAH)) jumped 4.7% or $1.70 to $37.65 after the technology and engineering consulting services provider reported revenues in the year ending in February soared 7.4% from a year ago to $5.8 billion.

Net income in the year plunged 14.2% to $252.5 million or $1.67 per diluted share from $294.1 million or $1.94 in the same quarter last year.

In fiscal 2018, Booz Allen forecasted revenues to increase in the range of 4% to 7% and diluted earnings per share between $1.76 and $1.86.

Energy XXI Gulf Coast Inc ((EXXI)) slid 4 cents to $26.66 after the oil and gas explorer said revenues in the first-quarter ending in March jumped 35.8% from a year ago to $157.9 million.

Net in the quarter swung to a loss of $65.3 million or $1.97 per diluted share from profit of $158.4 million or $1.55 in the same quarter last year.

The oil producer said as of March 31, it had cash and cash equivalents of $160.5 million and in the quarter it produced approx 41,000 barrels of oil equivalent per day, of which 71% was oil.

Rocky Mountain Chocolate Factory, Inc ((RMCF)) rose 6 cents to $11.62 after the gourmet chocolate and frozen yogurt stores operator said revenues in the year ending in February dropped 5.3% from a year ago to $38.3 million.

Same-store factory by franchisees and co-branded licensees decreased 4.7%.

Net income in the year declined 22% to $3.5 million or 58 cents per diluted share from $4.4 million or 73 cents in the same quarter last year.

The chocolate maker said operating income in the quarter soared 49% to $5.5 million.