Airbus Reports Halved Profits in Q1 Amid Delivery Slowdown
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy BA?
Source: CNBC
- Profit Decline: Airbus reported Q1 sales of €12.65 billion ($14.82 billion) with EPS of €0.74, slightly exceeding analyst expectations of €12.58 billion, yet the operating profit plummeted by 52% to €300 million, significantly below the anticipated €378 million, indicating a sharp decline in profitability.
- Delivery Slowdown: The company delivered 114 commercial aircraft in Q1, down from 136 a year ago, which not only impacts market share but may also lead to reduced future orders, especially as rival Boeing is regaining momentum.
- Future Delivery Guidance: Airbus reiterated its target to deliver 870 commercial aircraft by 2026, below the expected 880, primarily due to engine shortages from Pratt & Whitney, a situation that could hinder the company's long-term growth strategy.
- Shifting Market Sentiment: As Boeing recovers from its crisis, analysts note a marked cooling of investor sentiment towards Airbus, which, despite strong past performance, faces challenges in deliveries and profitability that could weaken its competitive position.
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Analyst Views on BA
Wall Street analysts forecast BA stock price to rise
16 Analyst Rating
14 Buy
1 Hold
1 Sell
Strong Buy
Current: 229.030
Low
150.00
Averages
269.14
High
298.00
Current: 229.030
Low
150.00
Averages
269.14
High
298.00
About BA
The Boeing Company is an aerospace company. Its segments include Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). Its BCA segment develops, produces and markets commercial jet aircraft principally for the commercial airline industry worldwide. Its family of commercial jet aircraft in production includes the 737 narrow-body model and the 767, 777 and 787 wide-body models. Its BDS segment is engaged in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility. Its BGS segment provides services to its commercial and defense customers worldwide. It sustains aerospace platforms and systems with a range of products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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