Boeing Obtains $46 Million Contract For Support Services

This week Boeing (BA) posted news that will help the Aerospace Company net millions in profit. It had stated that it has already received $46 million from the U.S. Air force to perform contract work for Saudi Arabia’s recently purchased F-15SA Eagle fighter bombers.

This contract is a good step for Boeing to receive additional revenue in the military spending area, especially since there was a drop in military spending in the recently announced fourth quarter 2016 earnings report. This might help the company get back on the right track and hopefully boost military revenue in the next earnings report.

Boeing has already made traders a lot of money this year by being up 16.22% year to date. That trend could possibly continue with new business prospects such as this one with Saudi Arabia.

Big Contract

As noted before, Boeing was able to obtain $46 million for a contract with the U.S. Air Force. The contract stipulates that Boeing must provide contract support for the F-15SA Aircraft. More specifically, it must provide support for the Royal Saudi Arabia Airport.

Boeing will also be responsible for replacement parts, and provide support for massive amounts of data. The main reason for Saudi Arabia using the F-15s is to bomb rebel targets in Yemen.

Boost to Earnings

This contract is an important highlight for Boeing, which stands to boost its revenue in the military defense space. While the company isn’t hurting in terms of generating revenue overall, it is having a tough time boosting revenue for the defense aircraft portion of its business. Not too long ago Boeing announced its fourth quarter earnings report.

The company was able to beat on both the top and bottom line of estimates. Boeing reported that it had earned $2.47 per share, which was easily over analysts’ estimate of $2.32 per share. On the revenue side, it was also a beat, but it was very close to the estimate. The company reported that it had earned $23.3 billion, which barely beat analysts’ estimate of $23.1 billion.