Revenue Forecast
The European plane maker, Airbus, is set to release its results for the fourth quarter on Thursday. According to a market consensus provided by the company based on estimates from 26 analysts, revenue for the three months ending in December is expected to reach €22.47 billion ($24.23 billion). This forecast exceeds the €20.64 billion revenue reported by Airbus in the previous quarter of 2022.
Earnings Forecasts
The consensus estimate for net profit in the fourth quarter of 2023 is €1.59 billion, slightly lower than the €1.68 billion figure from the previous year. However, adjusted earnings before interest and taxes, which is Airbus’s preferred measure of profitability, are anticipated to rise to €2.27 billion from €2.15 billion.
Positive Stock Performance
Since January, Airbus’s stock has surged by over 7%, reaching approximately €150.00. Comparatively, it was trading at about €115.00 a year ago.
What to Watch For
Airbus is expected to disclose its projections for the number of commercial aircraft deliveries to customers this year. In January alone, the company has already delivered 30 planes. Consensus estimates by Visible Alpha suggest that Airbus may guide for 813 deliveries, surpassing its initial target of 720 for 2023. Last year, Airbus successfully delivered 735 planes.
Financial Targets for 2024
The company is preparing to disclose their financial targets for the year 2024. These targets will include adjusted EBIT (Earnings Before Interest and Taxes) as well as free cash flow, excluding mergers and acquisitions and customer financing. This particular metric is closely monitored by both analysts and investors. The general expectation is that the company will aim for adjusted earnings of approximately EUR7.18 billion and a free cash flow of EUR4.83 billion, as reported by Visible Alpha consensus.
Supply Chain Challenges
The aviation industry has been grappling with the persistent challenges posed by supply chain disruptions. These issues have made it increasingly difficult to procure essential raw materials and spare parts. In November, Chief Executive Guillaume Faury acknowledged that the supply chain situation would continue to present challenges. Consequently, investors are eager to hear any commentary from Airbus on the current state of supply chains and how they may impact the company’s production plans moving forward.
Cash Profits from 2023 Results
Investors are eagerly anticipating news regarding the cash profits they can expect to receive from Airbus’s 2023 results. In 2022, the company distributed a dividend of EUR1.80 per share. The Visible Alpha consensus for 2023 suggests that investors may receive a dividend of EUR1.98 per share.