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Embraer S.A.(ERJ - Free Report) reported fourth-quarter 2021 adjusted earnings of 31 cents per American Depository Share (ADS), which beat the Zacks Consensus Estimate of 9 cents per ADS by a solid 244.4%. Earnings also improved significantly from the year-ago quarter’s loss of 7 cents per ADS.
Embraer reported a loss of 16 cents per ADS for full-year 2021, which came in narrower than the prior-year quarter loss of $2.52 per ADS. The loss also was narrower than the Zacks Consensus Estimate of a loss of 34 cents per ADS.
Total Revenues
Embraer’s fourth-quarter revenues were $1,301.3 million, up 35.8% year over year. Sales lagged the Zacks Consensus Estimate of $1,388 million by 6.2%
In 2021, ERJ generated sales worth $4.19 billion, up 10.2% from the year-ago figure. Revenues lagged the Zacks Consensus Estimate of $4.39 billion by 4.6%.
EmbraerEmpresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer delivered 55 jets in the reported quarter. The company delivered 16 commercial and 39 executive (26 light and 13 mid-size) jets compared with nine commercial and 21 executive (14 light and seven large) jets in the prior quarter.
The backlog at the end of the fourth quarter was $17 billion compared with $16.8 billion in the prior quarter, driven by solid order activity, particularly in the Executive & Commercial segments.
Operational Highlight
Embraer’s adjusted EBIT decreased 26.6% to $56.2 million in the fourth quarter of 2021 from $76.6 million reported in the fourth quarter of 2020.
The company posted quarterly adjusted EBITDA of $107 million, declining 26.5% from the year-earlier quarter.
Financial Update
As of Dec 31, 2021, ERJ’s cash and cash equivalents amounted to $1.82 billion compared with $1.88 billion as of Dec 31, 2020.
The company had net debt of $1,392.2 million as of Dec 31, 2021, down from $1,695.7 million as of Dec 31, 2020.
Its adjusted free cash flow in 2021 was $292.4 million, improving massively from the free cash outflow of $990.2 million in 2020. The improvement came primarily due to better profitability and working capital efficiencies.
Guidance
Embraer introduced its guidance for 2022. Its Commercial jet deliveries are projected in the band of 60-70 jets, while the Executive Aviation deliveries are expected in the band of 100-110 aircraft.
The company expects to generate revenues in the range of $4.5 billion-$5 billion in 2022.
Embraer anticipates adjusted EBIT margin in the range of 3.5%-4.5% and adjusted EBITDA margin in the band of 8%-9% in 2022. It anticipates free cash flow without mergers and acquisitions or divestitures of $50 million or more.
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2021 adjusted earnings of $2.84 per share declined 34.7% from $4.35 reported in the prior-year quarter. Earnings lagged the Zacks Consensus Estimate of $3.06 by 7.2%. Total revenues came in at $2,677 million, lagging the Zacks Consensus Estimate of $2,738.4 million by 2.2%.
The Zacks Consensus Estimate for Huntington Ingalls’s 2022 earnings has been revised upward by 6.6% in the past 60 days. For HII’s 2022 sales, the Zacks Consensus Estimate suggests growth of 13.9% from the prior-year reported figure.
Boeing (BA - Free Report) incurred an adjusted loss of $7.69 per share for the fourth quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 9 cents. Its revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%.
Boeing boasts a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2022 earnings implies growth of 137.2% from the prior-year reported figure.
Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2021 adjusted earnings of 16 cents per share, which exceeded the Zacks Consensus Estimate of 12 cents by 33.3%. The bottom line also improved from a loss of 18 cents per share incurred in the year-ago quarter.
The Zacks Consensus Estimate for Hexcel’s 2022 earnings suggests an improvement of a solid 359.3% from the prior-year reported figure. For HXL’s 2022 sales, the Zacks Consensus Estimate indicates growth of 17.5% from the prior-year figure.
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Embraer (ERJ) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
Embraer S.A.(ERJ - Free Report) reported fourth-quarter 2021 adjusted earnings of 31 cents per American Depository Share (ADS), which beat the Zacks Consensus Estimate of 9 cents per ADS by a solid 244.4%. Earnings also improved significantly from the year-ago quarter’s loss of 7 cents per ADS.
Embraer reported a loss of 16 cents per ADS for full-year 2021, which came in narrower than the prior-year quarter loss of $2.52 per ADS. The loss also was narrower than the Zacks Consensus Estimate of a loss of 34 cents per ADS.
Total Revenues
Embraer’s fourth-quarter revenues were $1,301.3 million, up 35.8% year over year. Sales lagged the Zacks Consensus Estimate of $1,388 million by 6.2%
In 2021, ERJ generated sales worth $4.19 billion, up 10.2% from the year-ago figure. Revenues lagged the Zacks Consensus Estimate of $4.39 billion by 4.6%.
EmbraerEmpresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
EmbraerEmpresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | EmbraerEmpresa Brasileira de Aeronautica Quote
Order & Delivery
Embraer delivered 55 jets in the reported quarter. The company delivered 16 commercial and 39 executive (26 light and 13 mid-size) jets compared with nine commercial and 21 executive (14 light and seven large) jets in the prior quarter.
The backlog at the end of the fourth quarter was $17 billion compared with $16.8 billion in the prior quarter, driven by solid order activity, particularly in the Executive & Commercial segments.
Operational Highlight
Embraer’s adjusted EBIT decreased 26.6% to $56.2 million in the fourth quarter of 2021 from $76.6 million reported in the fourth quarter of 2020.
The company posted quarterly adjusted EBITDA of $107 million, declining 26.5% from the year-earlier quarter.
Financial Update
As of Dec 31, 2021, ERJ’s cash and cash equivalents amounted to $1.82 billion compared with $1.88 billion as of Dec 31, 2020.
The company had net debt of $1,392.2 million as of Dec 31, 2021, down from $1,695.7 million as of Dec 31, 2020.
Its adjusted free cash flow in 2021 was $292.4 million, improving massively from the free cash outflow of $990.2 million in 2020. The improvement came primarily due to better profitability and working capital efficiencies.
Guidance
Embraer introduced its guidance for 2022. Its Commercial jet deliveries are projected in the band of 60-70 jets, while the Executive Aviation deliveries are expected in the band of 100-110 aircraft.
The company expects to generate revenues in the range of $4.5 billion-$5 billion in 2022.
Embraer anticipates adjusted EBIT margin in the range of 3.5%-4.5% and adjusted EBITDA margin in the band of 8%-9% in 2022. It anticipates free cash flow without mergers and acquisitions or divestitures of $50 million or more.
Zacks Rank
Embraer currently has a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2021 adjusted earnings of $2.84 per share declined 34.7% from $4.35 reported in the prior-year quarter. Earnings lagged the Zacks Consensus Estimate of $3.06 by 7.2%. Total revenues came in at $2,677 million, lagging the Zacks Consensus Estimate of $2,738.4 million by 2.2%.
The Zacks Consensus Estimate for Huntington Ingalls’s 2022 earnings has been revised upward by 6.6% in the past 60 days. For HII’s 2022 sales, the Zacks Consensus Estimate suggests growth of 13.9% from the prior-year reported figure.
Boeing (BA - Free Report) incurred an adjusted loss of $7.69 per share for the fourth quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 9 cents. Its revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%.
Boeing boasts a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2022 earnings implies growth of 137.2% from the prior-year reported figure.
Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2021 adjusted earnings of 16 cents per share, which exceeded the Zacks Consensus Estimate of 12 cents by 33.3%. The bottom line also improved from a loss of 18 cents per share incurred in the year-ago quarter.
The Zacks Consensus Estimate for Hexcel’s 2022 earnings suggests an improvement of a solid 359.3% from the prior-year reported figure. For HXL’s 2022 sales, the Zacks Consensus Estimate indicates growth of 17.5% from the prior-year figure.