Embraer Misses Where it Counts
Embraer (NYS: ERJ) reported earnings on Oct. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Embraer beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share expanded.
Gross margins grew, operating margins dropped, net margins grew.
Embraer logged revenue of $1.40 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $1.37 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.22 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.36 for Q3 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.3%, 410 basis points better than the prior-year quarter. Operating margin was 7.2%, 220 basis points worse than the prior-year quarter. Net margin was 4.6%, 460 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.81 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $6.01 billion. The average EPS estimate is $2.26.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 613 members out of 636 rating the stock outperform, and 23 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give Embraer a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Embraer is outperform, with an average price target of $33.56.
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The article Embraer Misses Where it Counts originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Embraer-Empresa Brasileira. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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