Boeing Announces Q3 Jet Deliveries; Shares Fall

Global aircraft manufacturer Boeing (BA) announced third-quarter deliveries across its commercial and defense operations. The company made progress and strived to maintain stability throughout its operations during the quarter, with a primary objective of safety and quality. However, shares fell almost 1.3% to $223.57 on October 12, as the company reported weaker-than-expected deliveries.

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With overall travel rebounding, Boeing delivered a total of 85 commercial jets in Q3, up from 79 jets delivered in Q2. This included 66 deliveries of the 737 MAX jet and none of its 787 models. (See Insiders’ Hot Stocks on TipRanks)

Commenting on the deliveries, the company said, “In our commercial business, we increased 737 MAX deliveries in the quarter, and progressed in safely returning the 737 MAX to service in more international markets.”

The 787 models are undergoing supervision from the Federal Aviation Administration (FAA) for certain defects found earlier in the quarter. The company added, “Production resources remain focused on inspections and rework and the 787 production rate remains lower than five airplanes per month. We will continue to take the time needed to ensure the highest levels of quality. While these efforts continue to impact deliveries, we’re confident this is the right approach to drive stability and first-time quality across our operations and to position the program for the long term as market demand recovers.”

Additionally, Boeing delivered a total of 37 defense aircraft in Q3, fewer than the 43 delivered in Q2. Year-to-date, Boeing has delivered a total of 241 commercial jets and 122 military aircraft.

Notably, the company will post detailed third-quarter deliveries and financial results on October 27, 2021.

Following the Q3 deliveries announcement, Cowen & Co. analyst Cai Rumohr maintained a Buy rating on the stock with a price target of $290, implying 29.7% upside potential to current levels.

Rumohr was disappointed with the September deliveries as 737 picked up the pace, but 787 still paused. However, he is encouraged by the fact that Boeing’s 22 net orders show the eighth straight month of positive bookings, reflecting an uptick in demand and surpassing Airbus’ 1 net order after lagging it in August.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 7 Buys and 5 Holds. The average Boeing price target of $275.82 implies 23.4% upside potential to current levels. Shares have gained 37.9% over the past year.