Boeing (BA) Delivered 35 Airplanes in September, Earnings Likely a Non-event Says Analyst

October 13, 2021 6:34 AM EDT
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Boeing (NYSE: BA) announced yesterday it increased its MoM deliveries to 35 in September from 24 delivered in August. Out of 35 delivered, 26 planes were 737 MAX.

Boeing also delivered 8 widebodies and a P-8 maritime patrol aircraft to the U.K. Royal Air Force. For the year, Boeing delivered 241 planes compared to 98 delivered for the first nine months of 2020.

Total airplane orders for September stood at 22, including 16 737 MAX jets.

“We made important progress driving stability throughout our operations in the third quarter, as we prioritized safety and quality and worked to deliver for our customers. Our defense and services teams delivered across several key programs. In our commercial business, we increased 737 MAX deliveries in the quarter, and progressed in safely returning the 737 MAX to service in more international markets,” Boeing said in a press release.

Morgan Stanley analyst Kristine Liwag has weighed in on the deliveries with positive comments. The analyst rates Boeing as Overweight with a $274.00 per share price target.

“We view it positively that Boeing increased deliveries sequentially and continued

to book new gross orders. We are encouraged at the uptick in overall deliveries, as well as the uptick in 737 deliveries from 16 to 27 sequentially. With these deliveries, we see the potential for downside risk to BCA revenues compared to estimates. We estimate 3Q BCA revenues will be $5.9bn relative to consensus of $7bn. During Boeing’s October earnings call, we will be listening for signs of clarity on both the 737 MAX and 787 programs. If there is no incremental information provided, we expect earnings to be a potential non-event for Boeing,” Liwag said in a client note.

On the other hand, Cowen analyst Cai von Rumohr reiterated an Outperform rating but views September deliveries as “somewhat disappointing.”

“Boeing's September deliveries were somewhat disappointing with 737 a tad light and 787 still paused. But 22 net orders were the eighth straight month of positive bookings, suggesting demand is on the mend; and they surpassed Airbus' 1 net order, after lagging in August (BA's 23 vs. AIR's 99),” von Rumohr said.

Shares of Boeing closed 1.27% lower at $223.57 yesterday.

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