Boeing (NYSE: BA) To Sell Parts to Iran

Yesterday, Boeing agreed to sell spare aircraft pars to Iran Air, owned by the Middle Eastern country.

This move marks the first sale of products by a United States aerospace company to the Islamic country since 1979.

The aircraft manufacturer stated that it filed to the United States Securities and Exchange Commission on Wednesday. In the document, the Chicago-based company announced that it had entered into an agreement and into discussions with Iran Air that detailed the overall conditions regarding the sale of airplane parts and safety equipment.

It is important to note that no final binding agreement has been signed by either company yet. However, the agreement shows that many American companies are beginning to realize the benefit of more amicable relations between America and Iran.

In January of this year, Iran implemented a 6 month deal that required the country to gradually shut down its nuclear program. In exchange, six world powers will grant Iran sanction relief. This deal was extended by an additional four months as of last weekend, because the parties were unable to reach a final agreement.

In April, Boeing got a license from the United States Treasury that allowed the company to sell products to Iran. If any sales take place, they would signify the return of industrialists from America to Iran, after they were forced to leave during the Islamic revolution and the hostage situation of United States diplomats in 1979.

KC-46 A Tanker Charge

On Wednesday, speculations blew up that Boeing will be redesigning the KC-46 A tanker program.

The KC-46 is a military refueling aircraft tanker that is constructed on Boeing’s 767 aircraft’s frame. The company will restructure the wiring system. Because of this request, it is estimated that the company will sustain a $271 million after tax charge throughout the year.

As a result, the company’s stock price has dropped to $124 by 2.5%.

Second Quarter Earnings

Boeing released its second quarter earnings report on Wednesday, and the results were undoubtedly favorable. It’s revenues rose 1.1% year over year. However, its revenues were $22.1 billion, which did not meet analysts’ expectations of $22.31 billion.

The company reported $2.42 earnings per share, which beat expectations of $1.99 by 21.6%. Earnings per share swelled 45% during the year, from $1.67 in the second quarter of 2013 to $2.42 in the second quarter in 2014. Year over year growth was up by 0.9% from $21.8 billion to $22.1 billion.

Boeing also announced guidance revisions, shooting higher on the basis of improved operating performance, reductions in cost, and backlogging that sustains revenue growth. The company now forecasts earnings in the range of $7.90 to $8.10 per share, an increase of $0.75 from past estimates of $7.15 to $7.35 per share.