Proactive Investors - 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.
Noting the update meant Airbus had outdone delivery guidance by 15 units, Deutsche Bank (ETR:DBKGn) analysts 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, the bank said in a note, after delays had hit orders this year.
“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 - up 2% on Friday’s close.