Tomahawk, WI 10/24/2013 (BasicsMedia) – Ideally, The Boeing Company (NYSE:BA) should have a much higher market cap than the $97.34 billion it is associated with currently. BA is one of the premier and most recognizable aerospace companies in the world. A few of its biggest rivals include Honeywell Intl Inc, Northrop Grumman, Lockheed Martin Company and BAE Systems PLC  to mention but a few. BA has just announced its third quarter financial results and from these, we see that its earnings improved from the figure of $1 billion it earned in the same period in 2012, to $1.16 billion.

BA’s Third Quarter Revenue Increases

BA has outperformed what Wall Street analysts had predicted. The company earned $22.13 billion as revenue, compared to the $21.68 billion analysts had mentioned. The increase in revenue during this quarter is by 11%, which compares favorably to the same quarter in 2012. The company benefited a great deal from higher commercial deliveries during this period. BA’s operating performance has been quite strong on a consistent basis. This is one reason why The Boeing Company’s financial results for each financial quarter are quite good every year.

BA Can Increase Its Revenues Exponentially By Servicing Backlog Orders

I have always held the view that if BA can focus on servicing its huge orders, this can help it see its revenue and sales increase manifold. Its solid operating performance can help propel BA’s cash flow, revenue and earnings to higher levels. BA’s backlog orders have reached a record level and the company needs to find ways of servicing them fast. The company is not under risk of losing or seeing these orders cancelled, therefore, it is more or less assured of stable revenue for quite some time to come, thus placing it far ahead of its nearest competitors in many aspects.

Once BA improves production levels and services the entire backlog, it will be on its way towards giving shareholders increased value for their investments. The other challenge facing BA is the high level of uncertainty within the U.S military or defense market. BA is often given contracts by the U.S military to supply a number of products, but this has not gone well in the last few months. Moreover, the recent U.S government shutdown is something BA could have done without since it affected companies providing the government with varied services and products.

BA’s Shift of Focus to Customers Paying Dividends

BA recently undertook certain changes where its businesses are focused more on the customers and what they need than anything else. BA has executed its programs in a more disciplined fashion and this has helped it to enjoy the sort of results it has just posted. Boeing has raised its expectations for this year based on the strong performance it has posted in its third quarter of 2013 financial results. Its guidance of operating cash flow and earnings is quiet good for the 2013 financial year. Its profits have jumped up quite a lot, and I only see this trend continuing.

BA shares are well on their way towards reaching new highs, which it has never reached before, if it maintains its current levels of growth or performance.

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