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Boeing Q1 Commercial Deliveries Down Y/Y on Lower 737 Demand
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The Boeing Company (BA - Free Report) recently announced program deliveries across its commercial and defense operations for the first quarter of 2020. The figures show a massive 66.4% decline in commercial shipments from the previous year. The company’s defense shipments also declined 35% year over year.
Q1 Orders & Deliveries
Boeing reported commercial deliveries of only 50 airplanes in first-quarter 2020, significantly declining year over year, primarily due to poor 737 jet deliveries and comparatively lower deliveries of the 787 Dreamliner.
Delivery of the single-aisle 737 jets fell to five in the quarter from 89 a year ago. Shipments of the 777 Dreamliner totaled six compared with 10 in the previous year’s first quarter. Shipments of the 787 Dreamliner totaled 29 compared with 36 in the year-ago period. The company delivered 10 767 jets during the quarter compared with two 747 jets and 12 767 jets sold in the year-ago quarter.
In its defense and space business, Boeing’s deliveries totaled 39 in first-quarter 2020, which declined from 60 dispatched in the year-ago period. Combining both segments, Boeing’s total deliveries in the first quarter of 2020 were a mere 89 units compared with 209 delivered in the year-ago quarter.
Factors Leading to Poor Delivery Figures
Demand for Boeing's 737 jets has been relatively lower over the past few quarters, following the consecutive crashes of its two 737 Max 8 jets in early 2019, which led to the subsequent grounding of the product line in MarchThings further worsened for this jet model as the company, in December 2019, finally announced the temporary suspension of production, commencing January 2020.
Further, in the first quarter, Boeing encountered a significant drop in aircraft deliveries as airline companies all over the world struggled from the effects of the coronavirus pandemic. As air traffic slowed sharply due to the virus outbreak, new aircraft, which were supposed to get delivered, are now lying idle in Boeing's manufacturing plants. Notably, such factors have led to the drab delivery figures for Boeing’s flagship commercial fleet in the first quarter.
Boeing Deliveries vs Airbus
Against the 89 aircraft deliveries made by Boeing, Airbus SE (EADSY - Free Report) delivered a total of 122 commercial aircraft in the first quarter of 2020, which comprised 104 single-aisle jets, four A330 jets and 14 A350 jets. So, in terms of commercial deliveries, Boeing’s arch-rival remained a step ahead during the first quarter.
Price Movement
Boeing’s stock plunged 63.1% in a year compared with the industry’s decline of 27.6%.
Leidos Holdings delivered a four-quarter earnings beat of 11.19%, on average. The Zacks Consensus Estimate for 2020 earnings indicates an annual improvement of 2%.
Huntington Ingalls delivered a positive earnings surprise of 2.83% in the last reported quarter. The Zacks Consensus Estimate for 2020 earnings implies an annual improvement of 3.8%.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Boeing Q1 Commercial Deliveries Down Y/Y on Lower 737 Demand
The Boeing Company (BA - Free Report) recently announced program deliveries across its commercial and defense operations for the first quarter of 2020. The figures show a massive 66.4% decline in commercial shipments from the previous year. The company’s defense shipments also declined 35% year over year.
Q1 Orders & Deliveries
Boeing reported commercial deliveries of only 50 airplanes in first-quarter 2020, significantly declining year over year, primarily due to poor 737 jet deliveries and comparatively lower deliveries of the 787 Dreamliner.
Delivery of the single-aisle 737 jets fell to five in the quarter from 89 a year ago. Shipments of the 777 Dreamliner totaled six compared with 10 in the previous year’s first quarter. Shipments of the 787 Dreamliner totaled 29 compared with 36 in the year-ago period. The company delivered 10 767 jets during the quarter compared with two 747 jets and 12 767 jets sold in the year-ago quarter.
In its defense and space business, Boeing’s deliveries totaled 39 in first-quarter 2020, which declined from 60 dispatched in the year-ago period. Combining both segments, Boeing’s total deliveries in the first quarter of 2020 were a mere 89 units compared with 209 delivered in the year-ago quarter.
Factors Leading to Poor Delivery Figures
Demand for Boeing's 737 jets has been relatively lower over the past few quarters, following the consecutive crashes of its two 737 Max 8 jets in early 2019, which led to the subsequent grounding of the product line in MarchThings further worsened for this jet model as the company, in December 2019, finally announced the temporary suspension of production, commencing January 2020.
Further, in the first quarter, Boeing encountered a significant drop in aircraft deliveries as airline companies all over the world struggled from the effects of the coronavirus pandemic. As air traffic slowed sharply due to the virus outbreak, new aircraft, which were supposed to get delivered, are now lying idle in Boeing's manufacturing plants. Notably, such factors have led to the drab delivery figures for Boeing’s flagship commercial fleet in the first quarter.
Boeing Deliveries vs Airbus
Against the 89 aircraft deliveries made by Boeing, Airbus SE (EADSY - Free Report) delivered a total of 122 commercial aircraft in the first quarter of 2020, which comprised 104 single-aisle jets, four A330 jets and 14 A350 jets. So, in terms of commercial deliveries, Boeing’s arch-rival remained a step ahead during the first quarter.
Price Movement
Boeing’s stock plunged 63.1% in a year compared with the industry’s decline of 27.6%.
Zacks Rank & Key Picks
Boeing currently carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the same space are Leidos Holdings, Inc. (LDOS - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Leidos Holdings delivered a four-quarter earnings beat of 11.19%, on average. The Zacks Consensus Estimate for 2020 earnings indicates an annual improvement of 2%.
Huntington Ingalls delivered a positive earnings surprise of 2.83% in the last reported quarter. The Zacks Consensus Estimate for 2020 earnings implies an annual improvement of 3.8%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>