Shares of Brazilian planemaker Embraer (NYSE:ERJ) 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.
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