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Boeing (BA) Gains on 53.5% Surge in Commercial Shipments

The Boeing Company’s BA shares gained a solid 3.6% to reach $214.13 on Jan 13th, driven by its recently revealed impressive fourth-quarter 2022 delivery figures.

Notably, the company’s fourth-quarter 2022 delivery numbers reflect a solid improvement of 53.5% in commercial shipments from the previous year’s tally. Also, defense shipments rose 2.1% year over year.

Combining both the segments, Boeing’s total deliveries in the fourth quarter were 200 units compared with the 146 units delivered in the year-ago period. Such strong delivery numbers are likely to bolster BA’s top line in the fourth quarter.

Commercial Deliveries Remain a Key Contributor

Boeing reported commercial deliveries of 152 airplanes in the fourth quarter of 2022,  an increase from the prior-year tally of 99. This was primarily driven by Boeing 737 and 787 airplane deliveries.

The shipments of Boeing 737 totaled 110 compared with 84 in the year-ago period, registering growth of 31% year over year. Boeing delivered 22 787 jets in the fourth quarter, while that in the year-ago quarter was nil.

The company also shipped 12 767 jets in the quarter, four more than the year-ago quarter’s tally.

The shipments of the 777 model totaled six, compared with four in the previous year’s third-quarter tally. The delivery figure of Boeing 747 was two in the quarter, compared with three in the last year’s figures.

Boeing vs. Airbus

A comparative analysis of Boeing’s archrival Airbus SE’s EADSY commercial shipment indicates that the latter came ahead of Boeing in terms of delivery numbers. Airbus delivered 226 commercial aircraft in the fourth quarter, compared with Boeing’s 152 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%. Meanwhile, EADSY registered growth of 20.9%, indicating that BA is on a better growth trajectory.

Defense Deliveries Up

Boeing reported defense deliveries of 48 airplanes in the fourth quarter of 2022,  an increase from the prior-year tally of 47.

The shipments of AH-64 Apache (remanufactured) deliveries remained steady at 14 compared with the year-ago period’s tally, while the delivery of AH-64 Apache (new) decreased to five compared with eight in the  year-ago period. The company delivered nine CH-47 Chinook (new) jets in the fourth quarter compared with three in the year-ago quarter, while three CH-47 Chinook (renewed) were delivered in the reported quarter compared to none in 2021’s fourth-quarter.

The shipments of F-15 Models included three jets compared with five in the prior-year quarter. Meanwhile, the delivery of the KC-46 Tanker remained unchanged year over year at six, while three F/A-18 jets were delivered compared with six in the fourth quarter of 2022.

The delivery of P-8 models decreased to two from five in the fourth-quarter of 2021; two commercial and civil satellites were delivered compared to none in the year-ago quarter. One material satellite was delivered in the fourth quarter of 2022 compared to none in the same quarter of 2021.

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 10 commercial and 23 executive (15 light and eight mid/super-midsize) jets compared with 11 commercial and 21 executive (12 light and nine large) jets in the prior quarter.

The long-term earnings growth rate for Embraer is pegged at 17%. The Zacks Consensus Estimate for ERJ’s 2022 earnings indicates an improvement of 300% from the prior-year reported figure.

Textron delivered 39 jets in the third quarter of 2022, down from 49 in the year-ago quarter. It also delivered 33 commercial turboprops, down from 35 in the third quarter of 2021.

The long-term earnings growth rate for Textron stands at 15.2%. 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 surged 45% in the past six months compared with the industry’s growth of 9.2%.

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Zacks Rank

Boeing carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The Boeing Company (BA) : Free Stock Analysis Report

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