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Embraer's (ERJ) Earnings Miss Estimates in Q3, Revenues Up

Zacks Equity Research

Embraer SA ERJ incurred third-quarter 2019 adjusted loss of 26 cents per American Depository share (ADS), wider than the Zacks Consensus Estimate of a loss of 18 cents. In the year-ago quarter, the company had incurred a loss of 9 cents.

Barring one-time items, the company incurred a GAAP loss of 42 cents.

Revenues

Embraer’s third-quarter revenues came in at $1,175.6 million, which increased 1.4% year over year.

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 price-consensus-eps-surprise-chart | Embraer-Empresa Brasileira de Aeronautica Quote

 

Order and Delivery

Embraer delivered 44 jets in the reported quarter, up 12.8% year over year. The company delivered 17 commercial and 27 executive (15 light and 12 large) jets compared with 15 commercial and 24 executive (17 light and 7 large) jets in year-ago quarter.

Backlog at the end of the quarter was $16.2 billion compared with $13.6 billion in the year-ago quarter.

Operational Highlight

It posted quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $18.2 million compared with $113.7 million in the year-ago quarter.

Guidance

The company reaffirmed its guidance for 2019. Embraer expects to deliver 85-95 commercial jets to the Commercial Aviation segment along with 90-110 executive jets, two KC-390 aircraft. Also, the company now expects five Super Tucano deliveries.

Zacks Rank

Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases


Lockheed Martin Corp LMT reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line improved 10.1% from $5.14 in the year-ago quarter.

Textron Inc TXT reported third-quarter 2019 earnings from continuing operations of 95 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 11.8%. The bottom line surged 55.7% from the year-ago quarter’s level.

General Dynamics Corporation GD reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also rose 10.2% from $2.85 in the prior-year quarter.

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