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) Q3 Earnings Lag Estimates, Deliveries Drop Y/Y
Read MoreHide Full Article
Embraer SA (ERJ - Free Report) incurred third-quarter 2018 adjusted loss of 16 cents per American Depository share (ADS), while the Zacks Consensus Estimate for earnings was pegged at 6 cents. The bottom line also deteriorated compared with earnings of 36 cents in the year-ago quarter.
Barring one-time items, the company incurred GAAP loss of 12 cents per share against the earnings of 57 cents in the prior-year period.
Revenues
Embraer’s third-quarter revenues came in at $1,151.7 million, lagging the Zacks Consensus Estimate of $1,378 million by 16.4%. Moreover, the top line declined 11.5% year over year, primarily on account of lower revenues at the Commercial Aviation, which were down by 45.3%.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer delivered total of 39 jets in the reported quarter, down 13.3% year over year. Of these, deliveries to the commercial aviation market and the business aviation market included 15 and 24 jets, respectively. Whereas in third-quarter 2017, the company had delivered 25 jets to the commercial aviation market and 20 in the business aviation market.
Embraer’s backlog at the end of the quarter under review was $13.6 billion, down from $18.8 billion in the year-ago quarter.
Operational Highlights
In the third quarter, Embraer’s cost of sales and services was $941.8 million, down from $1,064.8 million in the prior-year quarter.
Consequently, the company’s gross profit was down 11.3% to $209.9 million.
Embraer posted quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $104.8 million compared with $133.6 million in the year-earlier quarter.
Financial Update
As of Sep 30, 2018, the company’s cash and cash equivalents were $1,648.8 million compared with $1,132.6 million as of Jun 30, 2018.
Embraer had net debt of $880.5 million as of Sep 30, 2018, up from $721.2 million as of Jun 30, 2018.
Net cash inflow from operating activities was $227.4 million compared with cash inflow of $146 million in the year-ago period.
The company’s adjusted free cash outflow was $166.4 million as of Sep 30, 2018 compared with free cash outflow of $22.8 million at the end of the year-ago period.
Guidance
For 2018, the company reaffirmed its guidance. Embraer continues to expect to deliver 85-95 jets in the Commercial Aviation segment along with 70-80 light jets and 35-45 large jets in the Executive Jets segment.
Textron Inc. (TXT - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 61 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 19.7%.
Lockheed Martin Corp. (LMT - Free Report) delivered third-quarter 2018 earnings of $5.14 per share, beating the Zacks Consensus Estimate of $4.32 by 19%. The bottom line also improved 54.8% from the year-ago quarter’s figure of $3.32.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it. See them today for free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Embraer (ERJ) Q3 Earnings Lag Estimates, Deliveries Drop Y/Y
Embraer SA (ERJ - Free Report) incurred third-quarter 2018 adjusted loss of 16 cents per American Depository share (ADS), while the Zacks Consensus Estimate for earnings was pegged at 6 cents. The bottom line also deteriorated compared with earnings of 36 cents in the year-ago quarter.
Barring one-time items, the company incurred GAAP loss of 12 cents per share against the earnings of 57 cents in the prior-year period.
Revenues
Embraer’s third-quarter revenues came in at $1,151.7 million, lagging the Zacks Consensus Estimate of $1,378 million by 16.4%. Moreover, the top line declined 11.5% year over year, primarily on account of lower revenues at the Commercial Aviation, which were down by 45.3%.
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
Order and Delivery
Embraer delivered total of 39 jets in the reported quarter, down 13.3% year over year. Of these, deliveries to the commercial aviation market and the business aviation market included 15 and 24 jets, respectively. Whereas in third-quarter 2017, the company had delivered 25 jets to the commercial aviation market and 20 in the business aviation market.
Embraer’s backlog at the end of the quarter under review was $13.6 billion, down from $18.8 billion in the year-ago quarter.
Operational Highlights
In the third quarter, Embraer’s cost of sales and services was $941.8 million, down from $1,064.8 million in the prior-year quarter.
Consequently, the company’s gross profit was down 11.3% to $209.9 million.
Embraer posted quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $104.8 million compared with $133.6 million in the year-earlier quarter.
Financial Update
As of Sep 30, 2018, the company’s cash and cash equivalents were $1,648.8 million compared with $1,132.6 million as of Jun 30, 2018.
Embraer had net debt of $880.5 million as of Sep 30, 2018, up from $721.2 million as of Jun 30, 2018.
Net cash inflow from operating activities was $227.4 million compared with cash inflow of $146 million in the year-ago period.
The company’s adjusted free cash outflow was $166.4 million as of Sep 30, 2018 compared with free cash outflow of $22.8 million at the end of the year-ago period.
Guidance
For 2018, the company reaffirmed its guidance. Embraer continues to expect to deliver 85-95 jets in the Commercial Aviation segment along with 70-80 light jets and 35-45 large jets in the Executive Jets segment.
Zacks Rank
Embraer carries a Zacks Rank #5 (Strong Sell).
Upcoming Defense Release
Transdigm Group (TDG - Free Report) is expected to report third-quarter 2018 results on Nov 8. The company has an Earnings ESP of +0.05% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Textron Inc. (TXT - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 61 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 19.7%.
Lockheed Martin Corp. (LMT - Free Report) delivered third-quarter 2018 earnings of $5.14 per share, beating the Zacks Consensus Estimate of $4.32 by 19%. The bottom line also improved 54.8% from the year-ago quarter’s figure of $3.32.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>