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) Beats on Q3 Earnings, Reaffirms '17 Outlook
Read MoreHide Full Article
Embraer SA (ERJ - Free Report) reported third-quarter 2017 adjusted earnings of 41 cents per American Depository Share (ADS) that surpassed the Zacks Consensus Estimate of 30 cents by 36.7%. However, the bottom line declined 4.7% from 43 cents in the year-ago quarter.
Revenues
In the third quarter, Embraer posted total revenue of $1,310.4 million that missed the Zacks Consensus Estimate of $1,341 million by 2.3%. The top line also declined 13.5% year over year due to lower deliveries at the Commercial Aviation segment and the Executive Jets segment.
While revenues at the company’s Commercial Aviation segment decreased 8.7%, the Executive Jets segment witnessed a decline of 27.3%. Again, the same at the Defense & Security segment plunged 43.3% year over year.
Order and Delivery
Embraer reported third-quarter 2017 deliveries of 45 jets compared with 54 in the year-ago period, reflecting a 16.7% decline. The deliveries were also 23.7% lower than the second-quarter level.
The company delivered 25 and 20 jets in commercial and business aviation markets, respectively, compared with 27 jets each in the prior-year period. Deliveries to the executive aviation market included 13 light and seven large executive jets.
Markedly, Embraer exited the quarter under review with a backlog of orders worth $18.8 billion, higher than the second-quarter level of $18.5 billion.
Also, the company received orders from SkyWest Inc. (SKYW - Free Report) for 45 new aircraft. Again in September, this Brazilian aerospace conglomerate bagged an order of 25 E-Jets worth $1.1 billion, based on current list prices. All these aircraft are scheduled to be delivered in 2018.
In the beginning of October, the company had also announced a second order from SkyWest for 20 additional E-Jets. At current list prices, the order is estimated to be valued at $914 million. Notably, this order has been added to Embraer’s third-quarter 2017 backlog as well.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
In the quarter under review, Embraer’s cost of sales and services was $1,062 million, up from $1,229.7 million a year ago.
The company’s gross profit declined 12.7% to $248.4 million in the quarter.
Embraer posted quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $139.8 million compared with $54.3 million in the prior-year quarter.
Financial Update
As of Sep 30, the company’s cash and cash equivalents were $772.5 million compared with $1,241.5 million as of Dec 31, 2016.
At the end of the third quarter, Embraer had non-recourse and recourse debt of $722.8 million compared with $351 million at the end of 2016.
Net cash inflow from operating activities was $115.3 million compared with $235.3 million a year ago.
The company’s free cash outflow was $22.7 million compared with outflow of $20.5 in the year-ago quarter.
Guidance
Embraer reiterated its 2017 revenue guidance in the range of $5.7-$6.1 billion. While Defense & Security revenues are still expected in the $0.80-$0.90 billion band, Commercial Aviation revenues are projected in the range of $3.25-$3.40 billion. For Executive Jets segments, the company still anticipates revenues between $1.60 and $1.75 billion.
Furthermore, the company reaffirmed its expectation to deliver 97-102 jets in the Commercial Aviation segment along with 70-80 large jets and 35-45 light jets in the Executive Jets segment for 2017.
It still expects EBIT margin in the range of 8-9% and EBITDA margin of in 13.5-14.5% band.
For 2017, Embraer restated its plans to invest $650 million including capital expenditure of $200 million.
Peer Releases
Lockheed Martin Corp. (LMT - Free Report) reported third-quarter 2017 earnings from continuing operations of $3.24 per share, which missed the Zacks Consensus Estimate of $3.25 by 0.3%. This Zacks Rank #3 (Hold) company’s bottom line also declined from the year-ago period’s figure by 10.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Northrop Grumman Corp. (NOC - Free Report) reported third-quarter 2017 earnings of $3.68 per share, beating the Zacks Consensus Estimate of $2.92 by 26%. Reported earnings were also up 9.9% from $3.35 in the year-ago quarter. The company holds a Zacks Rank #2 (Buy).
Zacks Rank
Embraer carries a Zacks Rank #5 (Strong Sell).
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Image: Bigstock
Embraer (ERJ) Beats on Q3 Earnings, Reaffirms '17 Outlook
Embraer SA (ERJ - Free Report) reported third-quarter 2017 adjusted earnings of 41 cents per American Depository Share (ADS) that surpassed the Zacks Consensus Estimate of 30 cents by 36.7%. However, the bottom line declined 4.7% from 43 cents in the year-ago quarter.
Revenues
In the third quarter, Embraer posted total revenue of $1,310.4 million that missed the Zacks Consensus Estimate of $1,341 million by 2.3%. The top line also declined 13.5% year over year due to lower deliveries at the Commercial Aviation segment and the Executive Jets segment.
While revenues at the company’s Commercial Aviation segment decreased 8.7%, the Executive Jets segment witnessed a decline of 27.3%. Again, the same at the Defense & Security segment plunged 43.3% year over year.
Order and Delivery
Embraer reported third-quarter 2017 deliveries of 45 jets compared with 54 in the year-ago period, reflecting a 16.7% decline. The deliveries were also 23.7% lower than the second-quarter level.
The company delivered 25 and 20 jets in commercial and business aviation markets, respectively, compared with 27 jets each in the prior-year period. Deliveries to the executive aviation market included 13 light and seven large executive jets.
Markedly, Embraer exited the quarter under review with a backlog of orders worth $18.8 billion, higher than the second-quarter level of $18.5 billion.
Also, the company received orders from SkyWest Inc. (SKYW - Free Report) for 45 new aircraft. Again in September, this Brazilian aerospace conglomerate bagged an order of 25 E-Jets worth $1.1 billion, based on current list prices. All these aircraft are scheduled to be delivered in 2018.
In the beginning of October, the company had also announced a second order from SkyWest for 20 additional E-Jets. At current list prices, the order is estimated to be valued at $914 million. Notably, this order has been added to Embraer’s third-quarter 2017 backlog as well.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise | Embraer-Empresa Brasileira de Aeronautica Quote
Operational Highlights
In the quarter under review, Embraer’s cost of sales and services was $1,062 million, up from $1,229.7 million a year ago.
The company’s gross profit declined 12.7% to $248.4 million in the quarter.
Embraer posted quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $139.8 million compared with $54.3 million in the prior-year quarter.
Financial Update
As of Sep 30, the company’s cash and cash equivalents were $772.5 million compared with $1,241.5 million as of Dec 31, 2016.
At the end of the third quarter, Embraer had non-recourse and recourse debt of $722.8 million compared with $351 million at the end of 2016.
Net cash inflow from operating activities was $115.3 million compared with $235.3 million a year ago.
The company’s free cash outflow was $22.7 million compared with outflow of $20.5 in the year-ago quarter.
Guidance
Embraer reiterated its 2017 revenue guidance in the range of $5.7-$6.1 billion. While Defense & Security revenues are still expected in the $0.80-$0.90 billion band, Commercial Aviation revenues are projected in the range of $3.25-$3.40 billion. For Executive Jets segments, the company still anticipates revenues between $1.60 and $1.75 billion.
Furthermore, the company reaffirmed its expectation to deliver 97-102 jets in the Commercial Aviation segment along with 70-80 large jets and 35-45 light jets in the Executive Jets segment for 2017.
It still expects EBIT margin in the range of 8-9% and EBITDA margin of in 13.5-14.5% band.
For 2017, Embraer restated its plans to invest $650 million including capital expenditure of $200 million.
Peer Releases
Lockheed Martin Corp. (LMT - Free Report) reported third-quarter 2017 earnings from continuing operations of $3.24 per share, which missed the Zacks Consensus Estimate of $3.25 by 0.3%. This Zacks Rank #3 (Hold) company’s bottom line also declined from the year-ago period’s figure by 10.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Northrop Grumman Corp. (NOC - Free Report) reported third-quarter 2017 earnings of $3.68 per share, beating the Zacks Consensus Estimate of $2.92 by 26%. Reported earnings were also up 9.9% from $3.35 in the year-ago quarter. The company holds a Zacks Rank #2 (Buy).
Zacks Rank
Embraer carries a Zacks Rank #5 (Strong Sell).
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>