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Boeing (BA) Q2 Commercial Deliveries Plunge 32% Y/Y, Lag Airbus
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The Boeing Company (BA - Free Report) recently reported the delivery figures of its commercial and defense operations for the second quarter of 2024. It recorded a year-over-year decline of 32.4% and 26.3% in commercial and defense shipments, respectively.
Combining both segments, Boeing’s total deliveries in the second quarter were 120 units compared with 174 in the year-ago period. Such dismal delivery numbers might lead to a decline in BA’s second-quarter top line year over year.
Commercial Deliveries Drop
Boeing reported commercial deliveries of 92 airplanes in the second quarter of 2024, down from the prior-year level of 136, primarily due to lower 737 and 787 deliveries.
The shipments of 737 totaled 70 compared with 103 in the year-ago period. Nine 787 models were shipped compared with 20 in the corresponding period of 2023. Apart from these jets, Boeing delivered six 767 jets during the second quarter compared with eight in the year-earlier quarter.
Only 777 jet deliveries improved year over year from five to seven in the second quarter of 2024.
What Led to Lower Commercial Deliveries?
Boeing’s 737 jet program has been suffering since the beginning of this year. Notably, this jet maker had to slow down the production rate for the 737 aircraft model after it came under increased scrutiny from regulators following the mid-air blowout of a door plug on a 737 MAX 9 jet in January 2024.
This incident also led to subsequent inspections by airlines that revealed some serious quality control issues for some 737 Max 9 jets, making the delivery of these jets more difficult even after the Federal Aviation Administration cleared them to fly again.
Also, the delay in aircraft delivery that Boeing has been facing in China lately, due to a Chinese regulatory review of batteries powering the cockpit voice recorder, must have resulted in the southward trend in 737 deliveries.
Supplier shortages of a few key parts of 787 jets have been hindering the production rate for this aircraft model, which might have led to lower 787 delivery figures in the second quarter.
Boeing Vs. Airbus
A comparative analysis of Boeing’s archrival Airbus SE’s (EADSY - Free Report) 2024 commercial aircraft shows that the latter was ahead in terms of delivery numbers. Notably, Airbus delivered 181 commercial aircraft in the second quarter compared with Boeing’s 136 in the same period.
The year-over-year change in deliveries also reflects a similar story. While deliveries for Boeing indicate a decline of 32.6%, the same for EADSY signals a drop of 4.2%.
Defense Deliveries Decline Too
Boeing reported defense deliveries of 28 airplanes in the second quarter of 2024, which decreased from the prior-year level of 38.
The shipments of AH-64 Apache (remanufactured) deliveries were seven compared with the year-ago period’s figure of 16. Three AH-64 Apache (new) were delivered compared with five in the corresponding period of 2023.
BA delivered one CH-47 Chinook (new) jet during the second quarter compared with two in the year-ago quarter.
The delivery of F/A-18 Models came in at three compared with six in the second quarter of 2023. Two P-8 Models were delivered, flat year over year.
However, the delivery of CH-47 Chinook (renewed) jets increased to four from three in the year ago quarter. The shipments of F-15 Models rose to six jets from four in the prior-year quarter. Also, Boeing delivered two KC-46 Tankers compared to none delivered in the second quarter of 2023.
Expectations From Peers
Prominent jet makers that are yet to report their delivery numbers are Textron (TXT - Free Report) and Embraer S.A. (ERJ - Free Report) .
In the last reported quarter, Embraer delivered 25 jets comprising seven commercial and 18 executive (11 light and seven midsize) jets. The backlog at the end of the first quarter of 2024 was $21.1 billion for Embraer.
The stock boasts an average four-quarter earnings surprise of 73.12%. The Zacks Consensus Estimate for ERJ’s 2024 sales implies an improvement of 20.1% from the prior-year reported figure. Shares of Embraer have risen 98% in the past year.
Textron delivered 36 jets in the last reported quarter, up from 35 in the year-ago quarter. It also delivered 20 commercial turboprops, down from 30 in the first quarter of 2023. The company delivered 18 commercial helicopters in the first quarter of 2024, down from 22 in the year-ago period. At the end of the first quarter of 2024, Textron recorded a backlog of $13.72 billion.
The long-term earnings growth rate for Textron is 10.1%. The Zacks Consensus Estimate for TXT’s 2024 earnings indicates growth of 5.7% from the prior-year reported figure. Textron’s shares have rallied 28% in the past year.
Price Performance
Shares of Boeing have lost 15.5% in the past six months compared with the industry’s decline of 7.5%.
Image Source: Zacks Investment Research
Zacks Rank
The company carries a Zacks Rank #4 (Sell) at present.
Image: Bigstock
Boeing (BA) Q2 Commercial Deliveries Plunge 32% Y/Y, Lag Airbus
The Boeing Company (BA - Free Report) recently reported the delivery figures of its commercial and defense operations for the second quarter of 2024. It recorded a year-over-year decline of 32.4% and 26.3% in commercial and defense shipments, respectively.
Combining both segments, Boeing’s total deliveries in the second quarter were 120 units compared with 174 in the year-ago period. Such dismal delivery numbers might lead to a decline in BA’s second-quarter top line year over year.
Commercial Deliveries Drop
Boeing reported commercial deliveries of 92 airplanes in the second quarter of 2024, down from the prior-year level of 136, primarily due to lower 737 and 787 deliveries.
The shipments of 737 totaled 70 compared with 103 in the year-ago period. Nine 787 models were shipped compared with 20 in the corresponding period of 2023. Apart from these jets, Boeing delivered six 767 jets during the second quarter compared with eight in the year-earlier quarter.
Only 777 jet deliveries improved year over year from five to seven in the second quarter of 2024.
What Led to Lower Commercial Deliveries?
Boeing’s 737 jet program has been suffering since the beginning of this year. Notably, this jet maker had to slow down the production rate for the 737 aircraft model after it came under increased scrutiny from regulators following the mid-air blowout of a door plug on a 737 MAX 9 jet in January 2024.
This incident also led to subsequent inspections by airlines that revealed some serious quality control issues for some 737 Max 9 jets, making the delivery of these jets more difficult even after the Federal Aviation Administration cleared them to fly again.
Also, the delay in aircraft delivery that Boeing has been facing in China lately, due to a Chinese regulatory review of batteries powering the cockpit voice recorder, must have resulted in the southward trend in 737 deliveries.
Supplier shortages of a few key parts of 787 jets have been hindering the production rate for this aircraft model, which might have led to lower 787 delivery figures in the second quarter.
Boeing Vs. Airbus
A comparative analysis of Boeing’s archrival Airbus SE’s (EADSY - Free Report) 2024 commercial aircraft shows that the latter was ahead in terms of delivery numbers. Notably, Airbus delivered 181 commercial aircraft in the second quarter compared with Boeing’s 136 in the same period.
The year-over-year change in deliveries also reflects a similar story. While deliveries for Boeing indicate a decline of 32.6%, the same for EADSY signals a drop of 4.2%.
Defense Deliveries Decline Too
Boeing reported defense deliveries of 28 airplanes in the second quarter of 2024, which decreased from the prior-year level of 38.
The shipments of AH-64 Apache (remanufactured) deliveries were seven compared with the year-ago period’s figure of 16. Three AH-64 Apache (new) were delivered compared with five in the corresponding period of 2023.
BA delivered one CH-47 Chinook (new) jet during the second quarter compared with two in the year-ago quarter.
The delivery of F/A-18 Models came in at three compared with six in the second quarter of 2023. Two P-8 Models were delivered, flat year over year.
However, the delivery of CH-47 Chinook (renewed) jets increased to four from three in the year ago quarter. The shipments of F-15 Models rose to six jets from four in the prior-year quarter. Also, Boeing delivered two KC-46 Tankers compared to none delivered in the second quarter of 2023.
Expectations From Peers
Prominent jet makers that are yet to report their delivery numbers are Textron (TXT - Free Report) and Embraer S.A. (ERJ - Free Report) .
In the last reported quarter, Embraer delivered 25 jets comprising seven commercial and 18 executive (11 light and seven midsize) jets. The backlog at the end of the first quarter of 2024 was $21.1 billion for Embraer.
The stock boasts an average four-quarter earnings surprise of 73.12%. The Zacks Consensus Estimate for ERJ’s 2024 sales implies an improvement of 20.1% from the prior-year reported figure. Shares of Embraer have risen 98% in the past year.
Textron delivered 36 jets in the last reported quarter, up from 35 in the year-ago quarter. It also delivered 20 commercial turboprops, down from 30 in the first quarter of 2023. The company delivered 18 commercial helicopters in the first quarter of 2024, down from 22 in the year-ago period. At the end of the first quarter of 2024, Textron recorded a backlog of $13.72 billion.
The long-term earnings growth rate for Textron is 10.1%. The Zacks Consensus Estimate for TXT’s 2024 earnings indicates growth of 5.7% from the prior-year reported figure. Textron’s shares have rallied 28% in the past year.
Price Performance
Shares of Boeing have lost 15.5% in the past six months compared with the industry’s decline of 7.5%.
Image Source: Zacks Investment Research
Zacks Rank
The company carries a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.