Airbus: share down after 'sluggish' start to 2024

(CercleFinance.com) - Airbus shares fell by more than 2% on the Paris Bourse on Friday morning, the biggest drop on the CAC 40 index, after analysts described the start of the year as "sluggish".


The aircraft manufacturer described the operating context as showing no signs of improvement, marked by persistent geopolitical tensions and supply chain issues.

Consolidated adjusted EBIT - a measure of its commercial performance - came to E577m in Q1, compared with E773m a year ago.

Sales rose by 9% y-o-y to E12.8bn, with 142 commercial aircraft deliveries, compared with 127 in Q1 2023.

In a reaction note, analysts at Stifel described the figures as "disappointing", while pointing out that the group's Q1 is always complicated.

Oddo BHF deplores the "sluggish" start to the year, but also "unrivalled" visibility, with annual targets for 2024 firmly reiterated.

For FY 2024, Airbus says it is still aiming for around 800 commercial aircraft deliveries, for adjusted EBIT of between E6.5bn and E7bn.

According to RBC, its weak performance in Q1 is likely to compromise the achievement of annual forecasts, but the Canadian broker also expects business to pick up again in H2.

The share price was down over 2% on Friday morning following this publication.


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