Boeing Q1 Commercial Deliveries Down on Low 737 Jet Demand
The Boeing Company BA recently
reported program deliveries across its commercial operations for
the first quarter of 2019. The figures show a 19% decline in
commercial shipments compared to those in the first quarter of
2018.
Q1 Commercial Aircraft Orders &
Deliveries
Boeing reported first-quarter 2019 commercial deliveries of 149
airplanes, down year over year on steep decline in demand for 737
jets. Delivery of the single-aisle 737 jets declined to 89 in the
first quarter of 2019 from 132 a year ago.
Shipments of the 777 and 787 Dreamliners totaled 10 and 36 compared
with 12 and 34 in the year-ago period, respectively. The company
delivered two jets of the 747 variant, which remained flat year
over year. For the 767 jets, the company delivered 12 jets in the
quarter, up from four in the year-ago quarter.
Analyzing the Deliveries
Being the largest aircraft manufacturer in the commercial space,
Boeing continues to witness a solid inflow of contracts from both
the U.S. and international airlines, courtesy of its varied product
offerings. This is evident from the pivotal contracts acquired by
the company from British Airways and Bamboo Airways for delivering
42 jets of the 777 variant and 10 jets of the 787 variant,
respectively, in first-quarter 2019.
However, demand for Boeing's 737 jets suffered a setback during the
first quarter of 2019, as the company received only 32 new orders
for the jet compared with 122 in the year-ago quarter. Further,
situation worsened toward the end of the first quarter, when the
company’s 737 Max jets were grounded to avoid uncertainties in the
wake of a 737 Max 8 jet aircraft crash operated by Ethiopian
Airlines that killed all passengers aboard. This marked the second
deadly crash in six months involving Boeing’s 737 Max 8.
Price Performance
Shares of Boeing have increased 13.4% in the past 12 months against
the industry’s decline of 1.9%.
Zacks Rank & Key Picks
Boeing currently carries Zacks Rank #3 (Hold). A few better-ranked
stocks in the same sector are Spirit Aerosystems Holdings SPR,
AeroVironment, Inc. AVAV and Heico Corporation HEI.
While Spirit Aerosystems sports a Zacks Rank #1 (Strong Buy),
AeroVironment and Heico carry a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks
here.
Spirit Aerosystems’ long-term growth estimates currently stand at
7.8%. The Zacks Consensus Estimate for 2019 earnings has risen 3.7%
to $7.56 in the past 90 days.
AeroVironment’ long-term growth estimates currently stand at 25%.
The Zacks Consensus Estimate for 2019 earnings has increased 16.67%
to $1.75 in the past 90 days.
Heico Corporation came up with average positive earnings surprise
of 4.8% in the last four quarters. The Zacks Consensus Estimate for
2019 earnings has increased 2.9% to $2.14 in the past 90
days.
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The Boeing Company (BA) :
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Heico Corporation (HEI) :
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Spirit Aerosystems
Holdings, Inc. (SPR) : Free Stock Analysis Report
AeroVironment, Inc. (AVAV)
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