Five Things to Watch In Airbus and Boeing Results
April 25 2017 - 4:04PM
Dow Jones News
By Doug Cameron and Robert Wall
1 BOEING KICKS OFF
Boeing Co. is first up before the open Wednesday, with earnings
per share expected to rise to $1.94 from $1.74 a year earlier,
according to the consensus among analyst polled by Thomson Reuters.
Sales are forecast to dip 6% to $21.3 billion on lower 737 and
military aircraft deliveries. Boeing has missed guidance only once
in the past 20 quarters.
2 AIRBUS TO FOLLOW
Airbus SE follows before the open on Thursday, with earnings per
share expected to dip to 25 cents from 38 cents, according to the
consensus among analyst polled by Thomson Reuters. Sales are
forecast to rise 4% to 12.7 billion euros. Airbus has beat
expectations in just four of the past eight quarters, weighed by
charges on military programs.
3 IT'S THE DELIVERIES, STUPID
Boeing easily outpaced its rival in first quarter orders --
Airbus managed just six -- but it is keeping deliveries on track
that matters, given huge backlogs at both companies. Airbus pushed
just a dozen of its A320neos out the door in the quarter, and had
been targeting around 200 for the year as it wrestled with engine
issues. Boeing has yet to disclose how many 737 Max jets it will
deliver, with the first expected to start operating in May.
4 CASH ISN'T SO FREE
Airbus liquidity has been pressured by increased customer
financing activity as export credit support remains frozen, as well
as withheld payments on the A400M military transport jet. After a
weak quarter for deliveries, it may face a net outflow. Boeing's
cash should benefit from improved pricing on 787 deliveries, so
long as it avoids any more charges on its military or space
programs.
5 AND IRAN
Buyers haven't exactly been flocking to either company's
widebody jets, with Boeing in particular relying on a potential
deal for 15 of its 777s from Iran Air to bridge a production gap to
the new 777X model. Airbus has booked its Iran sales as firm
orders, with Boeing holding off on that step pending some
unspecified U.S. Treasury approvals. With the future of Iran's
nuclear deal still in flux, will both deals survive?
Write to Doug Cameron at doug.cameron@wsj.com and Robert Wall at
robert.wall@wsj.com
(END) Dow Jones Newswires
April 25, 2017 15:49 ET (19:49 GMT)
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