Airbus Shares Rise After 1Q Earnings Beat Views, Plans to Boost Output
05 Maggio 2022 - 10:54AM
Dow Jones News
By Maitane Sardon
Shares in Airbus SA rose Thursday after the company posted
first-quarter earnings above market expectations and said it would
boost future production rates for its A320.
The European plane maker reported adjusted earnings before
interest and taxes--a key profitability metric--of 1.26 billion
euros ($1.34 billion) for the quarter, up from EUR694 million a
year earlier. The figure beat analysts' forecasts of EUR719
million. Net profit jumped to EUR1.22 billion, beating analysts'
views of EUR460 million.
At 0756 GMT shares traded 7.9% higher at EUR110.72.
The company also said it would boost global production of the
A320 family of narrow-body jets to 75 a month starting in 2025, up
from around 50 currently. The company had previously said it was
planning to increase production to 65 a month by the summer of next
year.
The planned production boost was the most meaningful takeaway
from the company's first-quarter results as the market was
doubtful, and that this was being reflected in the share price,
Citi analyst Charles J. Armitage said in a research note. "There
still is doubt, but we feel this is now definitely an execution
issue, that Airbus and supply-chain now need to execute on, rather
than an ethereal hope, giving upward pressure on long-term
valuation," Mr. Armitage said.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
May 05, 2022 04:39 ET (08:39 GMT)
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