Boeing's Commercial Plane Deliveries Decline In April In The Wake Of Manufacturing Adjustments
Portfolio Pulse from Shivani Kumaresan
Boeing Inc. reported a decrease in April commercial airplane deliveries to 24, down from 26 a year ago, amid efforts to enhance 737 MAX production quality. The company faced 33 cancellations, mainly due to Lynx Air's cessation. Despite this, Boeing recorded seven new orders in April, contributing to a total of 138 gross orders for the year. In contrast, Airbus SE saw a 13% increase in deliveries with 61 aircraft in April. Boeing's Q1 revenue declined by 8% year-over-year, but its adjusted loss per share improved, beating consensus estimates. Boeing stock has lost over 10% in the last 12 months but is trading higher by 1.7% at the last check.
May 14, 2024 | 5:04 pm
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POSITIVE IMPACT
Airbus SE reported a 13% increase in aircraft deliveries in April, contrasting with Boeing's decrease, indicating a stronger performance in the short term.
Airbus's increase in deliveries could be seen as a competitive advantage over Boeing in the short term, potentially attracting more investors to Airbus due to its stronger performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Boeing's April deliveries decreased due to production adjustments, with a significant number of cancellations. However, it still managed to secure new orders and its Q1 financial performance exceeded expectations.
The decrease in deliveries and cancellations could negatively impact investor sentiment, but the better-than-expected Q1 results and the slight increase in stock price indicate a mixed short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Boeing through the iShares U.S. Aerospace & Defense ETF, which may see mixed short-term impacts due to Boeing's performance.
As Boeing is a significant component of ITA, its mixed performance and the slight stock price increase could have a neutral short-term impact on the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
The Invesco Aerospace & Defense ETF, which includes Boeing, might experience neutral short-term impacts reflecting Boeing's current market performance.
Given Boeing's role in PPA, the company's mixed April results and slight stock uptick could lead to a neutral short-term effect on the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50