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Boeing (BA) Q2 Commercial Jet Deliveries Up More Than 50% Y/Y

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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 2022. This reflects a solid improvement of 53.2% in commercial shipments from the previous year’s tally. However, defense shipments indicate a decline of 7% year over year.

Combining both the segments, Boeing’s total deliveries in the second quarter were 161 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 second quarter.

Commercial Deliveries Remain a Key Contributor

Boeing reported the commercial deliveries of 121 airplanes in the second quarter of 2022, which increased from the prior-year tally of 79, primarily driven by solid 737 deliveries.

The shipments of 737 totaled 103 compared with 50 in the year-ago period, thus registering growth of a solid 106% year over year. Boeing delivered seven 767 jets during the quarter, one jet less from year-ago quarter’s tally. The shipments of the 777 model totaled nine compared with eight in the previous year’s second quarter. The delivery figure of 747 increased by a jet compared with the last year’s figure.

However, the aerospace giant delivered none of its 787 Dreamliner jets in the second quarter of 2022 compared to the 12 jets it supplied in the prior-year quarter. Production-quality issues concerning the 787 Dreamliner remain a bottleneck for the company, resulting in a halt of its shipments. This hinders its overall commercial delivery demography to a certain extent.

Tailwinds

The demand for the 737 Max fleet continues to increase by leaps and bounds ever since its return to operations after the Federal Aviation Administration nod in November 2020. This, in turn, bolsters the commercial delivery numbers of Boeing.

Also, an upswing in air-travel demand due to the ease in domestic and international travel restrictions must have aided the delivery numbers of BA in the second quarter.

Boeing vs. Airbus

A comparative analysis of Boeing’s archrival Airbus SE’s (EADSY - Free Report) 2022 commercial aircraft indicates that the latter came ahead of Boeing in terms of delivery numbers. Airbus delivered 155 commercial aircraft in the second quarter compared with Boeing’s 121 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 53.2%, and on the contrary, EADSY registering a fall of 9.9%, indicating that the former is in a better growth trajectory.

Defense Deliveries Dip

Boeing reported the defense deliveries of 40 airplanes in the second quarter of 2022, which decreased from the prior-year tally of 43.

The shipments of AH-64 Apache (remanufactured) deliveries decreased to 13 compared with the year-ago period’s tally of 16, while the delivery of AH-64 Apache (new) remained flat at six. The company delivered five CH-47 Chinook (new) jets during the second quarter compared with the three jets shipped in the year-ago quarter.

The shipments of F-15 Models included four jets compared with five in the prior-year quarter, whereas the delivery of the KC-46 Tanker increased by two jets from the previous-year figure to reach a total of four in the second quarter of 2022. The delivery of F/A-18 Models came in at four compared with seven in the year-ago period, while the delivery of P-8 Models remained flat at three compared with the units delivered in the year-ago period.

Peer Prospects

Jet makers who 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 14 jets comprising six commercial and eight executive (six light and two midsize) jets. The backlog at the end of the first quarter was $17.3 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 73.3% from the prior-year reported figure.

Textron delivered 39 jets in the last reported quarter, up from 28 in the year-ago quarter. Textron also delivered 31 commercial turboprops, up from 14 in the first quarter of 2021.

The long-term earnings growth rate for Textron stands at 12.7%. The Zacks Consensus Estimate for TXT’s 2022 earnings indicates growth of 21.8% from the prior-year reported figure.

Price Performance

Shares of Boeing have rallied 20.5% in the past month compared with the industry’s rise of 4%.

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Zacks Rank

Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.