Boeing BA shares rose 3.3 percent on Tuesday after the aerospace plant announced record deliveries in 2018 to help its main rival, Airbus EADSY. Boeing, however, did not exceed its delivery target. Let's look at what investors need to expect from BA's fourth quarter and fiscal year 2019 financial results.
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Boeing said Tuesday has delivered 806 commercial jets in 2018, which will help set a new record and make 763 deliveries in 2017. The US industrial giant has dominated its European rival Airbus, which would have reached its target of 800 aircraft. Investors should note that Boeing's deliveries are well below its own target of between 810 and 815 aircraft due to a shortage of engines, fuselages and other parts that have slowed summer production in 2018.
In addition to impressive delivery volumes, Boeing also added 893 new orders last year. This included 203 aircraft sales in December, as global demand for air travel continues to grow. New orders are valued at over $ 143.7 billion and have been added to Boeing's approximately seven-year order backlog.
Deliveries, not orders, have become the absolute norm in the industry as most of the purchase price of an aircraft is paid on delivery. Boeing also highlighted the strong sales of its new 787 Dreamliner. In a press release, the company claimed that the aircraft "had expanded its status as a best selling double-aisle jet in history with 109 orders last year, or about 1,400 since the launch of the program ".
Boeing said Hawaiian Airlines HA had switched from the Airbus A330 to its 787. American Airlines AAL and United Airlines UAL also bought more Dreamliner jets. At the same time, Boeing's 777 models continued to perform well, driven by FedEx FDX, DHL Express, etc. sales.
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Boeing announced a new quarterly dividend of $ 2.055 per share in December, an increase of 20 percent from the $ 1.71 Boeing paid in 2018. The company also explained in detail what it hoped for. to be a significant increase in demand in India next 20 years.
Boeing's shares have risen about 9.5% over the past year, helping BA to crush the average 9% drop in its peer group. This industry includes General Dynamics GD, Lockheed Martin LMT, Northrop Grumman's NOC and Airbus.
Boeing shares jumped 3.33% to $ 339.04 per share early in the afternoon, following the release of its delivery report. Dow's other giants, Apple AAPL, Walmart WMT, DowDuPont DWDP and Caterpillar CAT, also climbed. Despite Tuesday's rise, BA shares remain about 14% lower than their maximum of $ 394.28 recorded in 52 weeks.
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Boeing's revenue for the fourth quarter of 2018 is expected to rise to $ 26.59 billion, or 4.8%, based on our current consensus estimate of Zacks. That would come after BA's fourth quarter 2017 revenue jumped 9%. The company's revenues for the year 2018 are expected to increase from US $ 93.39 billion in 2017 to 6.6% to US $ 99.55 billion.
In the future, the company's revenue for the first quarter of 2019 is expected to increase by 7.1% to $ 25.03 billion. In addition, Boeing's revenues for the full year 2019 are expected to reach $ 106.1 billion, an increase of 6.6% from our estimate for 2018.
Investors are unlikely to be pleased to see BA's adjusted fourth quarter earnings down 6.5% from the same period last year at $ 4.49 per share. Despite the expected slowdown in the fourth quarter, BA's earnings for fiscal 2018 are expected to skyrocket by almost 25%.
The story continues