Embraer Earnings Plummet

Shares of Brazilian planemaker Embraer were sliding in midday Thursday trading, following a Q3 2013 earnings report that showed the company missing earnings estimates badly, and missing on revenues to boot.

Q3 2013 revenues of $1.29 billion fell about 6% short of analysts' anticipated  $1.37 billion. Meanwhile, the company reported earning only $0.29 per American depositary share (the form in which Embraer's domestic shares trade on the U.S.'s New York Stock Exchange). Analysts had expected the company to report $0.49 per ADS in profit.

Much of the decline in profitability owed to weaker revenues, as compared both year-over-year to last year's Q3 results, and sequentially against Embraer's results from Q2 2013. A steep drop in operating profit margins exacerbated the problem. Operating margins declined to 5.9%, 130 basis points worse than last year's 7.2% profit margin, and an even worse sequential drop from last quarter's 8.7% margin.

According to Embraer, the company delivered 19 commercial and 25 executive jets in the fiscal third quarter.


The article Embraer Earnings Plummet originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story