Boeing (BA) Down 6.3% in Commercial Shipments, Lags Airbus
The Boeing Company BA recently reported its third-quarter 2023 delivery numbers, which reflected a decline of 6.3% in commercial shipments from the previous year’s tally. Defense shipments also declined 22.2% year over year.
Commercial Deliveries Down
Boeing reported commercial deliveries of 105 airplanes in the third quarter of 2023, down from the prior-year tally of 112. This was primarily driven by lower 737 airplane deliveries.
The shipments of Boeing 737 totaled 70 compared with 88 deliveries made in the year-ago period. However, 787 deliveries witnessed an acceleration compared to the previous year’s count. Boeing delivered 19 of its 787 jets in the third quarter of 2023 compared to nine in the year-ago quarter. The company also shipped eight of its 767 jets in the quarter, one less than the year-ago quarter’s tally.
The shipment of the 777 model was eight compared with six in the previous year’s third-quarter tally. The delivery figure of Boeing 747 was nil in the quarter, same as the prior-year quarter.
Boeing vs. Airbus
A comparative analysis of Boeing’s arch-rival Airbus SE’s EADSY commercial shipment indicates that the U.S. jet giant lagged Airbus in terms of delivery numbers. EADSY delivered 172 commercial aircraft in the third quarter compared with Boeing’s 105 in the same period.
The year-over-year growth rate of both companies also tells the same story, with Boeing’s deliveries indicating a decline of 6.3%. Meanwhile, Airbus registered growth of 22.9%, suggesting that it also surpassed BA in growth trajectory.
Defense Deliveries Decline
Boeing reported defense deliveries of 28 airplanes in the third quarter of 2023, highlighting a decrease of eight jets from the prior-year tally.
The shipments of AH-64 Apache (remanufactured) deliveries increased by one jet to nine compared with the year-ago period’s tally. Meanwhile, the delivery of AH-64 Apache (new) declined by two jets to five compared with the year-ago period.
Moreover, the company’s CH-47 Chinook (new) jet delivery in the third quarter remained unchanged at one compared with the year-ago quarter. Meanwhile, three CH-47 Chinook (renewed) jets were delivered in the reported quarter compared with two in the third quarter of 2022.
The shipments of F-15 Model jets were nil this quarter compared with four in the prior-year quarter. Meanwhile, the delivery of the KC-46 Tanker was three compared with one in the year-ago period, while three F/A-18 jets were delivered the same as the previous year’s count.
The delivery of P-8 models decreased by two jets from the second-quarter 2022 tally at two.
The delivery of MH-139 declined by three jets compared with the previous year’s count of four. The company delivered one T-7A compared with nil in the prior-year quarter. No commercial and civil satellites were delivered this quarter.
Peer Prospects
Prominent jet makers who are yet to report their third-quarter delivery numbers are Embraer S.A. ERJ and Textron TXT.
In the last reported quarter, Embraer delivered 47 jets. ERJ delivered 17 commercial and 30 executive (19 light and 11 midsize) jets compared with seven commercial and eight executive (six light and two midsize) jets in the prior quarter.
The long-term earnings growth rate for Embraer is pegged at 17%. The Zacks Consensus Estimate for ERJ’s 2023 sales suggests a growth rate of 22.1% from the prior-year reported figure.
Textron delivered 44 jets, down from 48 in the year-ago quarter. It also delivered 37 commercial turboprops, up from 35 in the second quarter of 2022.
The long-term earnings growth rate for Textron is 11.7%. The Zacks Consensus Estimate for TXT’s 2023 earnings indicates growth of 31.4% from the prior-year reported figure.
Price Performance
Shares of Boeing have rallied 47.1% in the past year against the industry’s decline of 1.7%.
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Zacks Rank
Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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