Airbus Stock: Shares Dip Despite Strong Quarter Results

Airbus shares experienced a notable decline on Thursday's XETRA trading session, dropping 2.2% to €165.14, moving further away from recent record levels. Despite posting impressive fourth-quarter results, including an 8% revenue increase to €24.7 billion and a significant improvement in earnings per share to €3.07 from €1.85 year-over-year, market sentiment remained cautious. The aerospace giant's adjusted EBIT grew by 16% to €2.56 billion in the fourth quarter, though the full-year EBIT of €5.35 billion fell short of the initial €5.5 billion forecast. The company's target to deliver approximately 820 commercial aircraft in the current fiscal year also slightly underperformed analyst expectations of 824 units.

Market Response and Dividend Update

While Airbus announced a dividend increase to €2.00 per share, representing a €0.20 increase from the previous year, this failed to fully alleviate market concerns as analysts had anticipated a higher payout of €2.12 per share. Investment analysts have adjusted their price target to €180, adopting a more conservative stance and advising investors to monitor production dynamics before making new investment decisions. The stock's recent performance represents a significant shift from its earlier 12% year-to-date gain before the current correction.