The 10-second takeaway
For the quarter ended March 31 (Q1), Embraer missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Embraer recorded revenue of $1.09 billion. The eight analysts polled by S&P Capital IQ hoped for revenue of $1.15 billion on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $1.08 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 $0.34. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS of $0.35 for Q1 were 41% lower than the prior-year quarter's $0.59 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 23.2%, 110 basis points worse than the prior-year quarter. Operating margin was 7.4%, 150 basis points worse than the prior-year quarter. Net margin was 5.4%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $6.15 billion. The average EPS estimate is $2.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 619 members out of 642 rating the stock outperform, and 23 members rating it underperform. Among 213 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 208 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 $34.63.
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