Boeing Outlook Anchors on Asia, Parexel Agrees to Go Private

Mukesh Buch
20 Jun, 2017
New York City

Boeing revised higher its industry outlook for the next decade. CAI International lifted second-quarter forecast. Lennar net fell 2% but revenues soared 17%. Parexel agreed to go private for $5 billion.

[R]1:55 PM New York – Boeing revised higher its industry outlook for the next decade. CAI International lifted second-quarter forecast. Lennar net fell 2% but revenues soared 17%. Parexel agreed to go private for $5 billion.[/R]

Tollbooth Index dropped 78.49 or 0.6% to 12,149.42.

Earnings Review

The Boeing Company ((BA)) jumped 1.1% or $2.09 to $201.13 after the aviation company forecasted demand in next two decades for plane deliveries to increase to 41,030 aircrafts, a 3.6% increase from last year''s forecast.

""As commercial airline fleets continue to grow worldwide, demand for aftermarket services designed to increase efficiency and extend the economic lives of airplanes will follow,"" said president and chief executive officer of Boeing Global Services Stan Deal.

Asia is expected to lead the global demand in the next two decades with nearly 40% share of new aircrafts delivery.

CAI International Inc ((CAI)) slid 3 cents to $24.11 after the Marine freight and logistics services provider lifted second-quarter net income estimate to between $10.7 million and $11.3 million, or 55 cents and 58 cents per share, nearly double from $5.3 million in the first-quarter of 2017.

CAI had signed revolving credit agreement to increase to total loan commitment of $960 million from $775 million and meet its lease commitment for 185 brand new railcars that are expected to be leased by the end of the fourth-quarter of 2017.

Freshly, the privately held healthy ready meals agreed to sell a minority stake for $77 million to Switzerland-based Nestle S.A.

Lennar Corporation ((LEN)) advanced 2.2% or $1.20 to $53.94 after the residential and commercial real estate developer reported revenues in the second-quarter ending in May soared 17% from a year ago to $3.3 billion.

Net income in the quarter fell 2.2% to $213.6 million or 91 cents per diluted share from $218.5 million or 95 cents in the same quarter last year.

Parexel International Corp ((PRXL)) jumped 3.9% or $3.32 to $87.25 after the biopharmaceutical outsourcing services provider today agreed to be acquired by Pamplona Capital Management, LLP for $88.10 per share in cash or $5 billion including debt.