Boeing’s Defense revenue continues to "under-grow" the industry, Goldman says, and the Commercial unit Q1 book-to-bill, while better than expected, was all narrowbody, driving dollar book-to-bill again below 1x, and the firm continues to see downside risk to expectations on the 777 and 787 on the widebody side.
However, Goldman says Q1 free cash was much higher than expected, though management did call out some degree of favorable timing; the 787 deferred production unwind was impressive, the firm says, and implies another quarter of solid improvement on the program, driving cash.
Goldman says all in all, Q1 results do not change its view that new aircraft supply is at an all-time high while new aircraft demand is slowing.
Now read: Can Boeing Still Count On Emirates? »