Please fasten your seatbelts and return your seats to an upright position. Earnings results for Motley Fool Stock Advisor pick Embraer (NYSE:ERJ) will be landing first thing Monday morning (before the bell).
Analysts project a smooth landing and no complications for Monday's results, with Embraer expected to post $1.1 billion in sales and $0.66 in profits per American Depositary Share (ADS) -- diluted. (Word to the Foolish: One ADS represents four domestic preferred shares of Embraer stock. If your financial data provider shows Embraer having earned, or expected to earn, far less than what you see described below, that's the reason.)
So far this year, Embraer has reported earning $179.4 million on $1.6 billion in revenues. Its resulting 11.2% net margin represents an improvement over the company's margins posted during the past 12 months (10.9%, according to Capital IQ). But even the lower 10.9% margin is the envy of the airplane-making world. It's half again as good as General Dynamics (NYSE:GD) has managed over the past 12 months (6.7%), better than twice as good as Boeing's (NYSE:BA) 4.3% margin or EADS' 4.4%, and seven times as large as the 1.5% margin that Bombardier has eked out.
It's worth pointing out that Embraer's performance year to date represents a decline from last year, in which it earned $183.5 million on $1.6 billion in revenues in the first half. But orders for its planes continue to pour in. For example, fellow Stock Advisor pick JetBlue (NASDAQ:JBLU) recently placed another $1 billion in orders with Embraer.
With its business booming, it is likely that Embraer will outperform the expectations David Gardner had when he recommended it in December of last year. Back then, David noted predictions that Embraer would make $3.5 billion in sales and earn $2.23 per ADS. Estimates for the company's performance now center around $3.8 billion in sales and $2.46 per ADS. But I guess we'll have to wait until Monday to see just how happy those Stock Advisor subscribers will be.
For more on Embraer, read:
- Something's in the Embraer
- Embraer Hits Turbulence
- Embraer Thinks Small
- When the Sky Really Is the Limit
Looking for more great companies at great prices? Let Fool co-founders David and Tom Gardner find them for you with a free trial subscription to Motley Fool Stock Advisor. Your portfolio will thank you.
Fool contributor Rich Smith does not own shares of any company named above.
