Embraer
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Embraer beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share expanded.
Gross margins grew, operating margins dropped, net margins grew.
Revenue details
Embraer logged revenue of $1.40 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $1.37 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.22 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.36. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.36 for Q3 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 25.3%, 410 basis points better than the prior-year quarter. Operating margin was 7.2%, 220 basis points worse than the prior-year quarter. Net margin was 4.6%, 460 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.81 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $6.01 billion. The average EPS estimate is $2.26.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 613 members out of 636 rating the stock outperform, and 23 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 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 $33.56.
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