Airbus Set to Report Strong Fourth Quarter Results, Exceeding Revenue Estimates
Airbus is poised to announce its financial results for the fourth quarter on Thursday, and analysts are predicting strong revenue performance. According to estimates from 26 analysts, the European plane maker is expected to report revenue of 22.47 billion euros for the three months ending in December, surpassing the previous quarter’s revenue of EUR20.64 billion in 2022.
While net profit is expected to come in slightly lower than the previous year’s figure, at EUR1.59 billion compared to EUR1.68 billion in Q4 2022, adjusted earnings before interest and taxes (EBIT) are set to climb to EUR2.27 billion from EUR2.15 billion. This figure is significant as adjusted EBIT is regarded as Airbus’s preferred measure of profitability.
Shares for Airbus have also seen impressive growth, increasing by over 7% since January and currently standing at approximately EUR150.00.
Airbus Expects to Surpass Delivery Targets for 2023
In addition to financial results, Airbus will also reveal its projections for aircraft deliveries this year. The company has already delivered 30 planes in January and is expected to exceed its target by guiding for 813 deliveries in 2023, surpassing the original goal of 720 planes. In 2022, Airbus successfully delivered 735 planes.
Financial Targets for 2024 and Supply-Chain Challenges
Airbus will outline its financial targets for 2024, including adjusted EBIT and free cash flow, excluding mergers and acquisitions and customer financing. Analysts predict adjusted earnings of approximately EUR7.18 billion and free cash flow of EUR4.83 billion.
The aviation industry has been grappling with supply-chain disruptions for several months, making it more difficult to secure necessary raw materials and spare parts. Airbus CEO, Guillaume Faury, previously acknowledged these challenges in November and investors will be interested in any comments regarding the current state of supply chains and their potential impact on the company’s production plans.
Dividend Expectations and Investor Outlook
Investors will also be eager to learn about the dividend payout for 2023. Airbus had allocated a dividend of EUR1.80 per share for 2022, and the consensus for 2023 currently stands at EUR1.98 per share. This announcement will shed light on the financial rewards shareholders can anticipate from the company’s performance in the coming year.
Analyst comment
Positive news. Strong fourth quarter results and exceeding revenue estimates indicate a healthy performance for Airbus. It is expected to surpass delivery targets for 2023 and outline favorable financial targets for 2024. The growth in shares also reflects investor confidence. The only potential concern is the supply-chain challenges, but overall, the market is expected to respond positively to Airbus’s performance.
