On Friday, Motley Fool Stock Advisor selection Embraer (NYSE:ERJ) released Q2 2006 earnings for the period ended June 30, 2006.
- Sales and per-share earnings both easily topped estimates, despite a $4.2 million loss from currency effects. (The Brazilian real appreciated an average of 11.7% versus the U.S. dollar from last year's Q2.)
- Gross margin, however, suffered. Higher costs related to ramping up the E190 and E195 regional jets contributed to the shortfall, as did currency effects.
- Embraer's backlog dipped to $10.2 billion from $10.9 billion during last year's Q2. Nevertheless, the jet maker still expects to deliver 145 aircraft during 2006.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$981,000 |
$1,020,971 |
$812,427 |
25.7% |
|
Net Profit |
-- |
$139,096 |
$82,943 |
67.7% |
|
EPS |
$0.64 |
$0.75 |
$0.47 |
59.6% |
|
Diluted Shares |
741,862 |
722,989 |
2.6% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
28.24% |
31.42% |
(3.18) |
|
Operating Margin |
13.21% |
12.17% |
1.04 |
|
Net Margin |
13.62% |
10.21% |
3.41 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,055,482 |
$1,175,352 |
74.9% |
|
Accounts Rec. |
$471,774 |
$904,796 |
(47.9%) |
|
Inventory |
$1,638,835 |
$1,713,141 |
(4.3%) |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$696,725 |
$627,229 |
11.1% |
|
Long-Term Debt |
$848,139 |
$981,462 |
(13.6%) |
Learn the ways of the balance sheet.
Cash Flow Checkup
|
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$11,293 |
$13,521 |
(16.5%) |
|
Capital Expenditures |
$33,687 |
$16,325 |
106.4% |
|
Free Cash Flow |
($22,394) |
($2,804) |
N/A |
Find out why Fools always follow the money.
Related Companies:
- Airbus
- Boeing (NYSE:BA)
- Bombardier
- General Dynamics (NYSE:GD)
- JetBlue (NASDAQ:JBLU)
- Textron (NYSE:TXT)
- U.S. Airways (NYSE:LCC)
Related Foolishness:
- How accurate was our Foolish Forecast?
- Embraer has room to fly.
- Watch Boeing flap its arms for take-off.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Both Embraer and JetBlue are Motley Fool Stock Advisor recommendations. As for an all-access pass to the service and you'll get 30 days to find out how David and Tom Gardner are walloping the market by nearly 35%.
Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out which stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy is always on time for departure.
