Boeing's (BA) Q3 Commercial Jet Deliveries Rise 32% Y/Y
The Boeing Company BA recently reported the delivery figures of its commercial and defense operations for the third quarter of 2022. This reflects a solid improvement of 31.8% in commercial shipments from the previous year’s tally. However, defense shipments indicate a drop of 2.7% year over year.
Combining both the segments, Boeing’s total deliveries in the third quarter were 148 units compared with the 122 units delivered in the year-ago period. Strong commercial delivery numbers are likely to bolster BA’s top line in the third quarter.
Commercial Deliveries Remain a Key Contributor
Boeing reported commercial deliveries of 112 airplanes in the third quarter of 2022, which increased from the prior-year tally of 85. This was primarily driven by solid 737 deliveries.
The shipments of 737 totaled 88 compared with 66 in the year-ago period, registering growth of 33.3% year over year. Boeing delivered nine 767 jets in the quarter, two jets less than the year-ago quarter’s tally.
The shipments of the 777 model totaled six, unchanged compared with the previous year’s third-quarter tally. The delivery figure of 747 was nil in the quarter compared with the last year’s two figures.
Boeing vs. Airbus
A comparative analysis of Boeing’s archrival Airbus SE’s EADSY 2022 commercial aircraft indicates that the latter came ahead of Boeing in terms of delivery numbers. Airbus delivered 140 commercial aircraft in the third quarter compared with Boeing’s 112 in the same period.
However, the year-over-year growth rate of both the companies has a different story, with Boeing’s deliveries indicating an improvement of an impressive 31.8%. Meanwhile, EADSY registered growth of 10.2%, indicating that BA is on a better growth trajectory.
Defense Deliveries Dip
Boeing reported defense deliveries of 36 airplanes in the third quarter of 2022, which decreased from the prior-year tally of 37.
The shipments of AH-64 Apache (remanufactured) deliveries decreased to eight compared with the year-ago period’s tally of 11, while the delivery of AH-64 Apache (new) increased to seven compared with four in the prior year. The company delivered one CH-47 Chinook (new) jet in the third quarter compared with the six jets shipped in the year-ago quarter.
The shipments of F-15 Models included four jets compared with three in the prior-year quarter. Meanwhile, the delivery of the KC-46 Tanker decreased by two jets from the previous-year figure to one jet in the third quarter of 2022.
The delivery of F/A-18 Models came in at three compared with four in the year-ago period, while the delivery of P-8 Models decreased by one jet to four in the third quarter of 2022.
Peer Prospects
Jet makers who are yet to report their delivery numbers are Textron TXT and Embraer S.A. ERJ.
In the last reported quarter, Embraer delivered 32 jets comprising 11 commercial and 21 executive (12 light and nine midsize) jets. The backlog at the end of the second quarter was $17.8 billion for Embraer.
The long-term earnings growth rate for Embraer is pegged at 17%. The Zacks Consensus Estimate for ERJ’s 2022 earnings implies an improvement of 460% from the prior-year reported figure.
Textron delivered 48 jets in the last reported quarter, up from 44 in the year-ago quarter. Textron also delivered 35 commercial turboprops, up from 33 in the second quarter of 2021.
The long-term earnings growth rate for Textron stands at 12.5%. The Zacks Consensus Estimate for TXT’s 2022 earnings indicates growth of 19.7% from the prior-year reported figure.
Price Performance
Shares of Boeing have declined 40.7% in the past year compared with the industry’s decline of 20.3%.
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Zacks Rank
Boeing carries a Zacks Rank #4 (Sell).
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