Dassault Aviations shares at all-time high after earnings report 📈

Shares of French company Dassault Aviation (AM.FR), known for producing Rafale combat aircraft, hit record levels and double-digit gains today. The combat aircraft manufacturer reported surprisingly high net profit and revenue despite supply chain constraints. 

• In 2022, net profit reached €830 million. That's up from €693.45 million in 2021 and above forecasts of €673.5 million (€7.23 billion in 2021). Sales of €6.93 billion were also above forecasts of €6.37 billion.The company delivered 46 jets in 2022, including 32 Falcons, compared to 55 Rafale and 30 Falcons in 2021;
• The company aims to secure supply chains in 2023 and plans to deliver 15 Rafale and 35 Falcon jets, although it estimates net sales will be lower compared to 2022.Bernstein analysts called the results positive but noted that the overall forecast for 2023 is in line with consensus expectations;
• The increase in sales was driven primarily by higher orders from defense units mainly in Indonesia, the UAE and Greece that purchased Rafale fighters. Dassault called the 156 orders collected (as many as 92 Rafale, 64 Falcon) for aircraft in 2022 historic - their value is about €21 billion - so the company will not complain about a lack of work;
• Dassault is in talks to deliver 26 Rafale for the Indian Navy, in competition with the Boeing F/A-18 Super Hornet. As yet unconfirmed reports were said to indicate that the navy prefers the Rafale.
• France last year placed an order for 42 Rafales. The company plans to introduce the new Falcon 6X by mid-2023, but delivery will depend on a supply chain that remains problematic;
• Dassault Aviation may be a beneficiary of the global rise in geopolitical tensions. According to CEO Eric Tappler, Rafale's production in 2022 was below the company's capacity at three aircraft per month and the company intends to look for more markets.

Dassault Aviation (AM.FR) shares, D1 interval. The stock has climbed above the 23.6 Fibonacci retracement of the upward wave initiated in the fall of 2022, which now provides important support for the entire move at €163. If the trend continues, the nearest significant resistance could be the psychological level of EUR 200 per share.  Source: xStation5