We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Embraer (ERJ) Reports Record Deliveries: 225 Jets in 2016
Read MoreHide Full Article
Embraer S.A. (ERJ - Free Report) reported solid delivery figures for the fourth quarter as well as 2016, marking a record high in six years. The company has delivered 75 jets in the fourth quarter and 225 jets in 2016.
2016 Deliveries
Embraer reported commercial aviation market deliveries of 108 planes and executive aviation market deliveries of 117 in 2016. Deliveries to the executive aviation market include 73 light and 44 large executive jets. The figures were within the company’s guidance of 105–110 commercial jets, 70–80 light executive jets and 35–45 large executive jets.
On a year-over-year basis, commercial deliveries increased 6.9%, while executive aviation deliveries dipped 2.5%.
Q4 Deliveries
Total deliveries in the fourth quarter were 75, compared with 78 in the year-ago period. Deliveries in the commercial aviation and business aviation markets were a respective 32 and 43 jets in the fourth quarter, compared to 33 and 45 jets in the year-ago period. Deliveries to the executive aviation market included 25 light and 18 large executive jets.
Q4 Backlog
The company exited the fourth quarter with an order backlog of $19.6 billion, lower than the third-quarter level of $21.4 billion.
During the fourth quarter, Embraer and United Airlines announced a firm order for 24 E175 jets. These planes are scheduled for delivery in 2017. The contract has a total value of $1.08 billion at list prices.
Long-Term Outlook
Embraer expects total market deliveries of 6,400–2,300 jets in the 70- to 90-seat segment and 4,100 units in the 90- to 130-seat segment by 2035. The 70- to 130-seat worldwide fleet in-service is anticipated to increase from 2,670 jets in 2015 to 6,690 by 2035, making it the fastest growing segment.
The Boeing Company’s (BA - Free Report) research report projects the commercial fleet to double over the next two decades to 45,240 airplanes by the end of 2035, backed by sustained 4.8% annual growth in commercial passenger traffic. For that, the world will need 39,620 new planes, worth $5.9 trillion, between 2016 and 2035. Note that the larger commercial aircraft category is being dominated by Boeing and Airbus Group SE (EADSY - Free Report) .
2016 Order Details of Peers
Boeing’s 2016 order details show that the company has booked 668 net commercial orders (accounting for cancellations), valued at $94.0 billion at current list prices. The order includes 550 orders for the 737, followed by 58 for the 787. On the other hand, Airbus registered net bookings of 731 aircraft, handily beating Boeing’s numbers. (Read more: Airbus 2016 Orders Beat Boeing's Again, Backlog Strong)
However, Boeing delivered a higher number of planes to its customers across the globe than Airbus. Specifically, Boeing and Airbus delivered 748 and 688 aircraft, respectively, in 2016.
Price Movement
Shares of Embraer have gained 15.9% over the last one month, outperforming the Zacks categorized Aerospace–Defense industry’s gain of 1.2%. This could be because the company continues to witness strong demand for its E-jets.
Lockheed’s earnings beat estimates by 26.2% in the last reported quarter. The Zacks Consensus Estimate for 2017 moved up by 1.2% in the last 60 days to $12.63.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Embraer (ERJ) Reports Record Deliveries: 225 Jets in 2016
Embraer S.A. (ERJ - Free Report) reported solid delivery figures for the fourth quarter as well as 2016, marking a record high in six years. The company has delivered 75 jets in the fourth quarter and 225 jets in 2016.
2016 Deliveries
Embraer reported commercial aviation market deliveries of 108 planes and executive aviation market deliveries of 117 in 2016. Deliveries to the executive aviation market include 73 light and 44 large executive jets. The figures were within the company’s guidance of 105–110 commercial jets, 70–80 light executive jets and 35–45 large executive jets.
On a year-over-year basis, commercial deliveries increased 6.9%, while executive aviation deliveries dipped 2.5%.
Q4 Deliveries
Total deliveries in the fourth quarter were 75, compared with 78 in the year-ago period. Deliveries in the commercial aviation and business aviation markets were a respective 32 and 43 jets in the fourth quarter, compared to 33 and 45 jets in the year-ago period. Deliveries to the executive aviation market included 25 light and 18 large executive jets.
Q4 Backlog
The company exited the fourth quarter with an order backlog of $19.6 billion, lower than the third-quarter level of $21.4 billion.
During the fourth quarter, Embraer and United Airlines announced a firm order for 24 E175 jets. These planes are scheduled for delivery in 2017. The contract has a total value of $1.08 billion at list prices.
Long-Term Outlook
Embraer expects total market deliveries of 6,400–2,300 jets in the 70- to 90-seat segment and 4,100 units in the 90- to 130-seat segment by 2035. The 70- to 130-seat worldwide fleet in-service is anticipated to increase from 2,670 jets in 2015 to 6,690 by 2035, making it the fastest growing segment.
The Boeing Company’s (BA - Free Report) research report projects the commercial fleet to double over the next two decades to 45,240 airplanes by the end of 2035, backed by sustained 4.8% annual growth in commercial passenger traffic. For that, the world will need 39,620 new planes, worth $5.9 trillion, between 2016 and 2035. Note that the larger commercial aircraft category is being dominated by Boeing and Airbus Group SE (EADSY - Free Report) .
2016 Order Details of Peers
Boeing’s 2016 order details show that the company has booked 668 net commercial orders (accounting for cancellations), valued at $94.0 billion at current list prices. The order includes 550 orders for the 737, followed by 58 for the 787. On the other hand, Airbus registered net bookings of 731 aircraft, handily beating Boeing’s numbers. (Read more: Airbus 2016 Orders Beat Boeing's Again, Backlog Strong)
However, Boeing delivered a higher number of planes to its customers across the globe than Airbus. Specifically, Boeing and Airbus delivered 748 and 688 aircraft, respectively, in 2016.
Price Movement
Shares of Embraer have gained 15.9% over the last one month, outperforming the Zacks categorized Aerospace–Defense industry’s gain of 1.2%. This could be because the company continues to witness strong demand for its E-jets.
Zacks Rank & a Key Pick
Embraer currently carries a Zacks Rank #3 (Hold). A better-ranked stocks in the same space is Lockheed Martin Corporation (LMT - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lockheed’s earnings beat estimates by 26.2% in the last reported quarter. The Zacks Consensus Estimate for 2017 moved up by 1.2% in the last 60 days to $12.63.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>