Boeing (NYSE:BA)'s jet deliveries in September totaled 27, including 15 of the troubled 737 MAX model, contributing to a Q3 total of 105 jets, falling short of Wall Street's target of 118. The shortfall did not dampen investor sentiment as Boeing's shares rose by 2.78% on Tuesday. This upward trend mirrored the increases in the S&P 500 and Dow Jones Industrial Average, which rose by 0.7% and 0.6%, respectively.
The positive reaction from the market has been attributed to lowered investor expectations following Wall Street's reduced estimates and supply chain issues with Spirit AeroSystems (NYSE:SPR). As a result, Q3 sales estimates have been revised to approximately $18.5 billion, a modest increase from the $16 billion reported in Q3 of 2022 when Boeing delivered 112 planes.
Despite the underperformance in Q3, Boeing's stock has seen a decline of about 9% over the past three months. However, Wall Street maintains an optimistic view for the future. The stock market's forward-looking nature has led to projections that Boeing will deliver 548 jets in 2023 as part of its recovery from Covid-induced lows. Expectations are set for even higher numbers in the subsequent years with projections of 707 and 779 jet deliveries in 2024 and 2025 respectively.
To meet these ambitious projections, Boeing faces the challenging target of delivering 177 planes in Q4. Despite recent setbacks, investors expect improvements down the line, indicating a hopeful outlook for the aerospace giant's recovery and growth.
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