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Embraer (ERJ) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
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Embraer SA (ERJ - Free Report) incurred third-quarter 2020 adjusted loss of 81 cents per American Depository Share (ADS), wider than the Zacks Consensus Estimate of a loss of 47 cents and the year-ago quarter loss of 26 cents.
Including one-time items, the company incurred a GAAP loss of 66 cents per share compared with a loss of 42 cents in the year-ago quarter.
Revenues
Embraer’s third-quarter revenues came in at $758.7 million, down 35.5% year over year. The decline was due to lower revenues in each of the company’s segments, except for Defense & Security.
Order and Delivery
Embraer delivered a total of 28 jets in the reported quarter, down 36.4% year over year. The company delivered 7 commercial and 21 executive (19 light and 2 large) jets during the third quarter compared with 17 commercial and 27 executive (15 light and 12 large) jets in third-quarter 2019.
Embraer’s backlog at the end of the third quarter was $15.1 billion, down from $16.2 billion a year ago.
Operational Highlights
In the third quarter, the company’s cost of sales and services totaled $703.9 million, down from $1,021.2 million in the prior-year quarter.
Also, Embraer’s gross profit slumped 64.5% year over year to $54.8 million.
Segment Result
Segment-wise, revenues in the Commercial Aviation segment were $177.2 million, which declined 56.5% on a year-over-year basis due to lower deliveries in the current quarter.
Revenues at the Executive Jets segment were $212.3 million, down 41.5% year over year on lower deliveries in third-quarter 2020.
Revenues at the Defense & Security segment were $154.7 million, up 47.3% from the figure reported in the third quarter of 2019, led by growth across several platforms, including the KC-390 and Super Tucanos.
Revenues at the Services & Support segment were $212.9 million, which plunged 28.4% year over year.
EmbraerEmpresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
As of Sep 30, 2020, the company’s cash and cash equivalents amounted to $1,701.1 million compared with $2,307.7 million as of Dec 31, 2019.
Embraer had net debt of $2,365.1 million as of Sep 30, 2020, up from $612.4 million as of Dec 31, 2019.
Adjusted net cash used in operating activities was $1,883 million at the end of third-quarter 2020 against net cash outflow of $115.7 million at the end of third-quarter 2019.
Guidance
Due to the uncertainty related to the impact of COVID-19, Embraer has kept its 2020 guidance suspended for the time being.
Zacks Rank
Embraer carries a Zacks Rank #5 (Strong Sell).
Recent Defense Releases
Lockheed Martin (LMT - Free Report) , a Zacks Rank #3 (Hold) company, reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Boeing Company (BA - Free Report) , a Zacks Rank #3 company, incurred adjusted loss of $1.39 per share for third-quarter 2020, narrower than the consensus estimate of a loss of $2.33.
General Dynamics (GD - Free Report) , also a Zacks Rank #3 company, reported third-quarter 2020 earnings from continuing operations of $2.90 per share, which beat the Zacks Consensus Estimate of $2.85 by 1.8%.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Embraer (ERJ) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
Embraer SA (ERJ - Free Report) incurred third-quarter 2020 adjusted loss of 81 cents per American Depository Share (ADS), wider than the Zacks Consensus Estimate of a loss of 47 cents and the year-ago quarter loss of 26 cents.
Including one-time items, the company incurred a GAAP loss of 66 cents per share compared with a loss of 42 cents in the year-ago quarter.
Revenues
Embraer’s third-quarter revenues came in at $758.7 million, down 35.5% year over year. The decline was due to lower revenues in each of the company’s segments, except for Defense & Security.
Order and Delivery
Embraer delivered a total of 28 jets in the reported quarter, down 36.4% year over year. The company delivered 7 commercial and 21 executive (19 light and 2 large) jets during the third quarter compared with 17 commercial and 27 executive (15 light and 12 large) jets in third-quarter 2019.
Embraer’s backlog at the end of the third quarter was $15.1 billion, down from $16.2 billion a year ago.
Operational Highlights
In the third quarter, the company’s cost of sales and services totaled $703.9 million, down from $1,021.2 million in the prior-year quarter.
Also, Embraer’s gross profit slumped 64.5% year over year to $54.8 million.
Segment Result
Segment-wise, revenues in the Commercial Aviation segment were $177.2 million, which declined 56.5% on a year-over-year basis due to lower deliveries in the current quarter.
Revenues at the Executive Jets segment were $212.3 million, down 41.5% year over year on lower deliveries in third-quarter 2020.
Revenues at the Defense & Security segment were $154.7 million, up 47.3% from the figure reported in the third quarter of 2019, led by growth across several platforms, including the KC-390 and Super Tucanos.
Revenues at the Services & Support segment were $212.9 million, which plunged 28.4% year over year.
EmbraerEmpresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
EmbraerEmpresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | EmbraerEmpresa Brasileira de Aeronautica Quote
Financial Update
As of Sep 30, 2020, the company’s cash and cash equivalents amounted to $1,701.1 million compared with $2,307.7 million as of Dec 31, 2019.
Embraer had net debt of $2,365.1 million as of Sep 30, 2020, up from $612.4 million as of Dec 31, 2019.
Adjusted net cash used in operating activities was $1,883 million at the end of third-quarter 2020 against net cash outflow of $115.7 million at the end of third-quarter 2019.
Guidance
Due to the uncertainty related to the impact of COVID-19, Embraer has kept its 2020 guidance suspended for the time being.
Zacks Rank
Embraer carries a Zacks Rank #5 (Strong Sell).
Recent Defense Releases
Lockheed Martin (LMT - Free Report) , a Zacks Rank #3 (Hold) company, reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Boeing Company (BA - Free Report) , a Zacks Rank #3 company, incurred adjusted loss of $1.39 per share for third-quarter 2020, narrower than the consensus estimate of a loss of $2.33.
General Dynamics (GD - Free Report) , also a Zacks Rank #3 company, reported third-quarter 2020 earnings from continuing operations of $2.90 per share, which beat the Zacks Consensus Estimate of $2.85 by 1.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>