The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Embraer met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Margins increased across the board.
Embraer reported revenue of $1.90 billion. The 11 analysts polled by S&P Capital IQ looked for sales of $1.90 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.35. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.90 per share. Non-GAAP EPS were $0.35 for Q4 compared to -$0.78 per share for the prior-year quarter. GAAP EPS were $0.68 for Q4 versus -$0.51 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.5%, 200 basis points better than the prior-year quarter. Operating margin was 12.0%, much better than the prior-year quarter. Net margin was 6.5%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.27 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $6.20 billion. The average EPS estimate is $2.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 608 members out of 633 rating the stock outperform, and 25 members rating it underperform. Among 207 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 203 give Embraer a green thumbs-up, and four 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 $33.03.
Looking for alternatives to Embraer? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Embraer to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Embraer-Empresa Brasileira. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Embraer Deal Could Put Boeing Back in the Fighter Business
There's more to fighters than just jet engines. Turboprops could power Boeing's defense profits going forward.
Boeing Kicks the Tires at Embraer
Boeing has held talks with Embraer about potentially acquiring its smaller rival, even though the Brazilian government would probably block such a deal.
Why Embraer, Voya Financial, and Hovnanian Enterprises Jumped Today
One of these companies could be an acquisition target.