Yahoo Finance Embraer (ERJ) Q1 Loss Wider Than Estimates, Revenues Rise Y/Y
Embraer S.A. ERJ reported a first-quarter 2023 adjusted loss of 48 cents per American Depository Share (“ADS”), wider than the Zacks Consensus Estimate of a loss of 3 cents per ADS. Moreover, the loss came in higher than the loss of 41 cents per ADS reported in the prior-year quarter.
Total Revenues
Embraer’s first-quarter revenues were $717 million, up 53% year over year, primarily due to higher revenues in three out of four business segments. The reported figure beat the Zacks Consensus Estimate of $701 million by 2.2%.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer-Empresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | Embraer-Empresa Brasileira de Aeronautica Quote
Order & Delivery
Embraer delivered 15 jets in the reported quarter. ERJ delivered seven commercial and eight executive (six light and two midsize) jets compared with 30 commercial and 50 executive (33 light and 17 midsize) jets in the prior quarter.
The backlog at the end of the first quarter was $17.4 billion compared with $17.5 billion at the end of the fourth quarter of 2022.
Operational Highlights
Embraer’s adjusted operating loss was $31.6 million in the first quarter of 2023 compared with the $27 million reported in the first quarter of 2022.
The company posted a quarterly adjusted EBITDA of $10.3 million, declining 21.9% from the year-earlier quarter.
Financial Update
As of Mar 31, 2023, ERJ’s cash and cash equivalents amounted to $1,156.4 million compared with $1,816.9 million as of Dec 31, 2022.
The company had net debt of $1,137.7 million as of Mar 31, 2023, up from $721.9 million as of Dec 31, 2022.
Its adjusted free cash outflow in the first quarter was $399 million, a significant decline from $67.8 million reported in the prior-year period.
Guidance
Embraer reaffirmed its guidance for 2023. Its commercial jet deliveries are projected in the band of 65-70 jets, while Executive Aviation deliveries are expected in the band of 120-130 aircraft.
The company expects to generate revenues in the range of $5.2-$5.7 billion in 2023. Embraer anticipates the adjusted EBIT margin in the range of 6.4%-7.4% and the adjusted EBITDA margin in the band of 10%-11% in 2023. It expects free cash flow of $150 million or more for 2023.
Zacks Rank
Embraer currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Textron Inc. TXT reported first-quarter 2023 adjusted earnings of $1.05 per share, which surpassed the Zacks Consensus Estimate of 95 cents by 10.5%. The bottom line also improved by 8.2% from the year-ago quarter’s figure.
Total revenues came in at $3,024 million, which missed the Zacks Consensus Estimate of $3,078 million by 1.8%. However, the reported figure increased 0.8% from the year-ago quarter’s $3,001 million.
The Boeing Company BA incurred an adjusted loss of $1.27 per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. However, the bottom line improved from the year-ago quarter’s loss of $2.75 per share.
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.
Lockheed Martin Corporation LMT reported first-quarter 2023 adjusted earnings of $6.43 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 5.9%. However, the bottom line was in line with the year-ago quarter's figure.
Net sales amounted to $15.13 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line rose 1.1% from $14.96 billion in the year-ago quarter.
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