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Embraer (ERJ) to Report Q3 Earnings: What's in the Cards?

Embraer S.A. ERJ is slated to report third-quarter 2022 results on Nov 11 before market open.

In the last reported quarter, the company delivered an earnings surprise of 520%. In the trailing four quarters, the company delivered an average earnings surprise of 167.62%.

Factors to Consider

A solid order backlog and strength in the orders of executive aviation must have contributed to Embraer’s third-quarter revenues. Also, an improvement in orders from the defense line of business is expected to have contributed to Embraer’s third-quarter 2022 revenues.

Meanwhile, the improved performance expected from the service and support business unit might have aided ERJ’s overall third-quarter revenues.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.20 billion, suggesting growth of 24.8% from the year-ago quarter.

From the earnings perspective, the product and service mix pricing and the overall operational performance, including tax efficiencies, might have contributed to Embraer’s overall third-quarter earnings. Also, Embraer’s continuous efforts to deleverage its balance sheet may have weighed down the interest expense of the company, thus benefiting the bottom line in the soon-to-be-reported quarter.

Moreover, the deliveries of aircraft are projected to be more concentrated in the second half of 2022, buoyed by improved economic conditions lately. This may have aided the margins of the company, which must have contributed to its third-quarter earnings.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 15 cents per share, indicating an improvement of 183.3% from the prior-year reported figure.

EmbraerEmpresa Brasileira de Aeronautica Price and EPS Surprise

EmbraerEmpresa Brasileira de Aeronautica Price and EPS Surprise
EmbraerEmpresa Brasileira de Aeronautica Price and EPS Surprise

EmbraerEmpresa Brasileira de Aeronautica price-eps-surprise | EmbraerEmpresa Brasileira de Aeronautica Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Embraer this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

ERJ has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Recent Defense Releases

The Boeing Company BA incurred an adjusted loss of $6.18 per share for the third quarter of 2022, much wider than the Zacks Consensus Estimate of a loss of a penny. The bottom line also deteriorated from the year-ago quarter’s loss of 60 cents.

Boeing’s backlog at the end of the third quarter of 2022 increased to $381.32 billion from $371.73 billion at the end of the second quarter of 2022.

Textron Inc. TXT reported third-quarter 2022 earnings of $1.06 per share, which surpassed the Zacks Consensus Estimate of 94 cents by 12.8%. The bottom line also improved by 24.7% from the year-ago quarter’s figure.

Total revenues came in at $3,078 million, which missed the Zacks Consensus Estimate of $3,207.6 million by 4%. However, the reported figure increased 2.9% from the year-ago quarter’s $2,990 million.

Raytheon Technologies Corporation’s RTX third-quarter 2022 adjusted earnings per share of $1.21 beat the Zacks Consensus Estimate of $1.11 by 9%. However, the bottom line dropped 4% from the year-ago quarter’s adjusted earnings of $1.26.

Raytheon Technologies’ third-quarter sales of $16,951 million missed the Zacks Consensus Estimate of $17,003 million by 0.3%. However, the sales figure rose 5% from the $16,213 million recorded in the year-ago quarter.

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The Boeing Company (BA) : Free Stock Analysis Report
EmbraerEmpresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
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Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
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