The 10-second takeaway
For the quarter ended March 31 (Q1), Embraer missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Embraer recorded revenue of $1.09 billion. The 10 analysts polled by S&P Capital IQ looked for revenue of $1.14 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 $0.16. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.38 per share. GAAP EPS of $0.16 for Q1 were 53% lower than the prior-year quarter's $0.34 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 22.2%, 100 basis points worse than the prior-year quarter. Operating margin was 3.7%, 60 basis points worse than the prior-year quarter. Net margin was 2.8%, 260 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $6.14 billion. The average EPS estimate is $2.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 605 members out of 630 rating the stock outperform, and 25 members rating it underperform. Among 191 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 188 give Embraer a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Embraer is hold, with an average price target of $36.58.
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.