By Senad Karaahmetovic
Boeing (NYSE:BA) yesterday reported it delivered a strong performance in December to close another challenging year. The defense company said it delivered 480 airplanes and won 774 net new orders in 2022, which compares to 340 deliveries and 479 net new orders in 2021.
In December, Boeing delivered 69 airplanes, including 53 737 MAX planes, and won 203 new net orders. As a result, the company’s backlog now sits at 4,578 airplanes, mostly 737 MAX units.
"As the airline industry expands its recovery, we are seeing strong demand across our product family, particularly the highly efficient 737 MAX and the 787 Dreamliner," said Boeing Commercial Airplanes President and CEO Stan Deal.
The strong performance in December doesn’t come as a surprise given that United ordered 100 787s and 100 737 MAXs.
Here is what Wall Street analysts have to say about Boeing’s report.
Goldman Sachs analysts: “Orders in December were the strongest month since pre-pandemic… We expect to see an ongoing recovery in air traffic and desire for more fuel efficient aircraft driving continued strength in new order demand moving ahead.”
Cowen analysts: “Healthy December order & deliveries suggest Q4 EPS & FCF should at least match above-guide consensus with potential upbeat "color" and guide on 2023. Because we're early in what's expected to be a long upcycle, we reit our Outperform for a PT of $230, an 8% 2025 FCF yield.”
Morgan Stanley analysts: “We will be closely monitoring a potential step-up in 787 deliveries and production, while keeping an eye out for production stabilization of ~31/month for the 737 MAX. We highlight our recent downgrade of BA from OW to EW following the stock’s strong performance.”
Boeing stock price closed at $206.69 yesterday.