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Embraer S.A. (ERJ - Free Report) reported second-quarter 2021 adjusted earnings of 24 cents per American Depository share (ADS) against the Zacks Consensus Estimate of a loss of 30 cents. The bottom line also improved significantly from the year-ago quarter’s loss of $1.08.
Including one-time items, the company reported GAAP earnings of 48 cents per share against a loss of $1.71 in the year-ago quarter.
Revenues
Embraer’s second-quarter revenues came in at $1,130.5 million, up 110.4% year over year. The increase in revenues was due to growth witnessed in Commercial Aviation, Executive Aviation, Defense & Security and Services & Support segments.
EmbraerEmpresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer delivered 34 jets in the reported quarter, up 100% year over year. The company delivered 14 commercial and 20 executive (12 light and eight large) jets compared with four commercial and 13 executive (nine light and four large) jets in the year-ago quarter.
Backlog at the end of the second quarter was $15.9 billion compared with $14.2 billion in the prior quarter.
Operational Highlight
In the second quarter, the company’s cost of sales and services totaled $924.8 million, up from $520.8 million in the prior-year quarter.
However, Embraer’s gross profit improved massively from $16.4 million in second-quarter 2020 to $205.7 million in second-quarter 2021.
It posted quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $160.7 million against loss of $120.4 million in the year-earlier quarter.
Financial Update
As of Jun 30, 2021, the company’s cash and cash equivalents amounted to $1,351.2 million compared with $1,883.1 million as of Dec 31, 2020.
Embraer had net debt of $1,840.5 million as of Jun 30, 2021, up from $1,695.7 million as of Dec 31, 2020.
Adjusted net cash generated from operating activities was $95.1 million during second-quarter 2021 against cash outflow worth $441.4 million in second-quarter 2020.
The company’s adjusted free cash flow during the second quarter was $45.1 million against free cash outflow of $472.2 million in second-quarter 2020. The improvement is primarily attributable to better profitability and working capital efficiencies.
Guidance
Embraer issued guidance for 2021. Its Commercial Aviation deliveries are projected in the range of 45-50 jets, while the forecast for Executive Aviation deliveries lies in the band of 90-95 aircraft.
The company further expects to generate revenues in the range of $4.0-$4.5 billion during 2021.
Curtiss-Wright (CW - Free Report) reported second-quarter 2021 adjusted earnings of $1.56 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 2%.
Textron Inc. (TXT - Free Report) reported second-quarter 2021 adjusted earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 61 cents by 32.8%.
Raytheon Technologies’ (RTX - Free Report) second-quarter 2021 adjusted earnings per share of $1.23 outpaced the Zacks Consensus Estimate of 92 cents by 33.7%.
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Embraer (ERJ) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Embraer S.A. (ERJ - Free Report) reported second-quarter 2021 adjusted earnings of 24 cents per American Depository share (ADS) against the Zacks Consensus Estimate of a loss of 30 cents. The bottom line also improved significantly from the year-ago quarter’s loss of $1.08.
Including one-time items, the company reported GAAP earnings of 48 cents per share against a loss of $1.71 in the year-ago quarter.
Revenues
Embraer’s second-quarter revenues came in at $1,130.5 million, up 110.4% year over year. The increase in revenues was due to growth witnessed in Commercial Aviation, Executive Aviation, Defense & Security and Services & Support segments.
EmbraerEmpresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
EmbraerEmpresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | EmbraerEmpresa Brasileira de Aeronautica Quote
Order and Delivery
Embraer delivered 34 jets in the reported quarter, up 100% year over year. The company delivered 14 commercial and 20 executive (12 light and eight large) jets compared with four commercial and 13 executive (nine light and four large) jets in the year-ago quarter.
Backlog at the end of the second quarter was $15.9 billion compared with $14.2 billion in the prior quarter.
Operational Highlight
In the second quarter, the company’s cost of sales and services totaled $924.8 million, up from $520.8 million in the prior-year quarter.
However, Embraer’s gross profit improved massively from $16.4 million in second-quarter 2020 to $205.7 million in second-quarter 2021.
It posted quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $160.7 million against loss of $120.4 million in the year-earlier quarter.
Financial Update
As of Jun 30, 2021, the company’s cash and cash equivalents amounted to $1,351.2 million compared with $1,883.1 million as of Dec 31, 2020.
Embraer had net debt of $1,840.5 million as of Jun 30, 2021, up from $1,695.7 million as of Dec 31, 2020.
Adjusted net cash generated from operating activities was $95.1 million during second-quarter 2021 against cash outflow worth $441.4 million in second-quarter 2020.
The company’s adjusted free cash flow during the second quarter was $45.1 million against free cash outflow of $472.2 million in second-quarter 2020. The improvement is primarily attributable to better profitability and working capital efficiencies.
Guidance
Embraer issued guidance for 2021. Its Commercial Aviation deliveries are projected in the range of 45-50 jets, while the forecast for Executive Aviation deliveries lies in the band of 90-95 aircraft.
The company further expects to generate revenues in the range of $4.0-$4.5 billion during 2021.
Zacks Rank
Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Curtiss-Wright (CW - Free Report) reported second-quarter 2021 adjusted earnings of $1.56 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 2%.
Textron Inc. (TXT - Free Report) reported second-quarter 2021 adjusted earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 61 cents by 32.8%.
Raytheon Technologies’ (RTX - Free Report) second-quarter 2021 adjusted earnings per share of $1.23 outpaced the Zacks Consensus Estimate of 92 cents by 33.7%.