Shares of Boeing (BA) are in focus on Thursday after UPS (UPS) announced a $5.3B order for 14 747-8 airplanes. The news come a day after Boeing reported third quarter results that beat analysts' expectations and raised its commercial airplanes delivery forecast for the year.

UPS ORDER: UPS this morning said it ordered 14 Boeing 747-8 cargo jets, a deal valued at $5.3B at list prices. The order includes options to buy 14 more of the jets in the future, and suggests the freight company may see an improvement in air cargo following several years of slowing growth. UPS will take delivery of the first two aircraft in late 2017, UPS said on its quarterly earnings conference call. In a statement released by Boeing, Brendan Canavan, president of UPS Airlines, commented that the aircraft are a "strategic investment for increased capacity for UPS customers around the globe," adding that the 747-8 will allow UPS to "size our network in both new and existing markets."

WHAT'S NOTABLE: Sales of the 747-8 have been slow, and in January, Boeing said it would reduce production of the aircraft to six a year beginning in September and recognize a $569M after-tax charge as a result of the reduction. Boeing noted in July that it was "reasonably possible" to end 747 production due to lower-than-expected demand for large commercial passenger and freighter aircraft. The dominance of the 747-8 has been challenged in recent years by other planes that are more fuel efficient. Sales have also slowed for 747-8 rival, Airbus' (EADSY) A380. According to Boeing's website, the 747-8 has an "iconic nose door," allowing 16% more revenue cargo volume than the 747-400F.

QUARTERLY RESULTS: Boeing yesterday reported Q3 adjusted earnings per share of $3.51 on revenue of $23.9B, beating consensus estimates of $2.62 and $23.64B, respectively. The company raised its commercial airplane delivery forecast for fiscal 2016 to 745-750 from 740-745. The additional planes caused Boeing to raise its revenue view for the year by $500M to $93.5B-$95.5B, compared with analysts' estimates of $94.02B. Boeing also boosted its adjusted EPS view for the year to $6.80-$7.00 from $6.10-$6.30, exceeding analysts' estimates at the time of $6.34.

ANALYST REACTION: Baird analyst Peter Arment reiterated an Outperform rating and $161 price target on Boeing. In a note to clients, he said he continues to see upside in Boeing shares and that the "solid" Q3 results provide meaningful support to the ability to grow cash despite production cuts.

PRICE ACTION: At midday, Boeing declined about 2.6% to $141.86, though shares are up about 4% over the last three months.