Airbus Group (EPA:AIR) will likely beat full-year earnings and free cash flow guidance after reporting higher-than-expected deliveries for 2023 last week, analysts have said.
France-based Airbus announced last week that it had delivered 735 aircraft over the year to December, marking an 11% increase on 2022.
The update showed Airbus had outdone delivery guidance by 15 units, noted Deutsche Bank analysts, who tipped full-year earnings would likely be better than expected as a result.
Airbus had forecast in November that adjusted pre-tax earnings would come in at €6 billion for the full year, alongside free cash flow of €3 billion.
The jump in deliveries signals an improving supply-chain situation after delays had hit orders this year, Deutsche Bank said in a note,.
“This bodes well for 2024 deliveries and the continuation of the challenging production ramp-up,” analysts added.
Deutsche also highlighted Airbus’ record order intake for 2,319 aircraft over the year, arguing these deals will fuel higher-than-anticipated free cash flow.
Analysts backed Airbus following the update, alongside offering a share price target of €152 - 2% above Friday’s close.