Revenue Forecast

The European plane manufacturer, Airbus, is set to announce its second-quarter results on Wednesday. According to a consensus gathered from 20 analysts, the company is expected to report revenue of €15.87 billion ($17.66 billion). This forecast surpasses the €12.81 billion revenue recorded in the same period last year.

Earnings Forecasts

Airbus's preferred measure of profitability, adjusted earnings before interest and taxes (EBIT), is anticipated to reach €1.73 billion this quarter, as per the consensus. In comparison, the prior-year period reported €1.38 billion in adjusted EBIT. Furthermore, the reported net profit is expected to significantly increase to €1.20 billion from €682 million.

Points of Interest

PRODUCTION

Analysts and investors are closely monitoring potential changes to aircraft production rates. Airbus anticipates increasing their monthly production of A320 narrow-body aircraft to 65 by the end of 2024 and 75 by 2026. As for the A330, Airbus aims to produce four aircraft per month by 2024, while the larger A350 model is expected to reach a monthly production rate of nine by the end of 2025. However, Jefferies analyst Chloe Lemarie suggests that A320 production may not exceed 45 aircraft per month. This uncertainty surrounding the production rate of A320 remains a significant question mark. Early in the pandemic, Airbus reduced the production of its wide-body planes due to travel restrictions and border closures, which severely impacted international air traffic. Currently, airlines are scrambling to acquire planes in order to expand their capacity and meet the surge in demand for international air travel.

SUPPLY CHAINS

Airbus is currently facing challenges with its supply chain, specifically experiencing difficulties in obtaining spare parts and materials necessary for aircraft production. According to Citi analysts, these supply chain disruptions may persist throughout 2023 and the first half of 2024. This assessment is based on conversations with aviation industry players at the Paris Air Show held last month.

Airbus Expects Strong Performance in 2021

Airbus, the renowned aviation company, is poised to make a significant impact this year with its projected delivery of approximately 720 planes to customers. Alongside this impressive achievement, the group anticipates adjusted earnings of roughly EUR6 billion.

One essential metric closely monitored by analysts and investors is free cash flow before mergers, acquisitions, and customer financing. Airbus forecasts that this crucial figure will reach approximately EUR3 billion, further affirming the company's positive outlook for the year ahead.

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