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Embraer (ERJ) Q4 Earnings Lag Estimates, Revenues Rise Y/Y
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Embraer S.A.(ERJ - Free Report) reported fourth-quarter 2022 adjusted earnings of 24 cents per American Depository Share (“ADS”), missing the Zacks Consensus Estimate of 30 cents per ADS. Moreover, the bottom line declined 22.6% from the 31 cents per ADS reported in the prior-year quarter.
In 2022, Embraer reported adjusted earnings of 21 cents per American Depository Share (“ADS”), which improved massively from a loss of 16 cents per ADS reported in 2022.
Total Revenues
Embraer’s fourth-quarter revenues were $1,991.6 million, up 53% year over year, primarily due to higher revenues in all its segments. However, the reported figure lagged the Zacks Consensus Estimate of $2,017 million by 1.3%.
For 2022, Embraer reported total revenues of $4540.5 million compared with $4,197.2 million reported in 2021.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer delivered 80 jets in the reported quarter. ERJ delivered 30 commercial and 50 executives (33 light and 17 midsize) jets compared with 10 commercial and 23 executives (15 light and eight mid/super-midsize) jets in the prior quarter. In 2022, a total of 159 jets were delivered, of which 57 were commercial aircraft and 102 were executive jets (66 light and 36 midsize).
The backlog at the end of the fourth quarter was $17.5 billion, representing an increase of $500 million year over year.
Operational Highlights
Embraer’s adjusted EBIT was $166.2 million in the fourth quarter of 2022 compared with the $56.3 million reported in the fourth quarter of 2021.
The company posted quarterly adjusted EBITDA of $228.2 million, improving 113.1% from the year-earlier quarter.
Financial Update
As of Dec 31, 2022, ERJ’s cash and cash equivalents amounted to $1.82 billion, flat with Dec 31, 2021 levels.
The company had net debt of $721.9 million as of Dec 31, 2022, down from $1,392.2 million as of Dec 31, 2021.
Its adjusted free cash outflow for 2022 was $477.6 million, a significant improvement compared to $292.4 million reported in 2021 due to the divestment of Évora’s facilities in 2Q22, outstanding results and sales performance from Executive Aviation and very strict control over working capital, especially regarding inventories, suppliers, and customer payments in advance.
Guidance
Embraer initiated 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 a free cash flow of $150 million or more for 2023.
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.75 per share for fourth-quarter 2022 in contrast to the Zacks Consensus Estimate of earnings of 5 cents. The bottom line, however, improved from the year-ago quarter’s loss of $7.69 per share.
In the quarter under review, Boeing’s revenues amounted to $19.98 billion, which surpassed the Zacks Consensus Estimate of $19.43 billion by 2.8%. The top line also improved 35% from the year-ago quarter’s figure of $14.79 billion.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share (EPS) of $1.27 beat the Zacks Consensus Estimate of $1.24 per share by 2.4%. Moreover, the bottom line increased 18% from the year-ago quarter’s tally.
Raytheon Technologies’ fourth-quarter sales of $18,093 million missed the Zacks Consensus Estimate of $18,196 million by 0.6%. The sales figure, however, rose 6% from $17,044 million recorded in the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2022 EPS of $3.58, which beat the Zacks Consensus Estimate of $3.53 per share by 1.4%. Quarterly earnings increased 5.6% from $3.39 per share in the year-ago quarter.
General Dynamics’ fourth-quarter revenues of $10,851 million beat the Zacks Consensus Estimate of $10,674 million by 1.7%. Revenues also rose 5.4% from the year-ago quarter’s levels.
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Embraer (ERJ) Q4 Earnings Lag Estimates, Revenues Rise Y/Y
Embraer S.A.(ERJ - Free Report) reported fourth-quarter 2022 adjusted earnings of 24 cents per American Depository Share (“ADS”), missing the Zacks Consensus Estimate of 30 cents per ADS. Moreover, the bottom line declined 22.6% from the 31 cents per ADS reported in the prior-year quarter.
In 2022, Embraer reported adjusted earnings of 21 cents per American Depository Share (“ADS”), which improved massively from a loss of 16 cents per ADS reported in 2022.
Total Revenues
Embraer’s fourth-quarter revenues were $1,991.6 million, up 53% year over year, primarily due to higher revenues in all its segments. However, the reported figure lagged the Zacks Consensus Estimate of $2,017 million by 1.3%.
For 2022, Embraer reported total revenues of $4540.5 million compared with $4,197.2 million reported in 2021.
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 80 jets in the reported quarter. ERJ delivered 30 commercial and 50 executives (33 light and 17 midsize) jets compared with 10 commercial and 23 executives (15 light and eight mid/super-midsize) jets in the prior quarter. In 2022, a total of 159 jets were delivered, of which 57 were commercial aircraft and 102 were executive jets (66 light and 36 midsize).
The backlog at the end of the fourth quarter was $17.5 billion, representing an increase of $500 million year over year.
Operational Highlights
Embraer’s adjusted EBIT was $166.2 million in the fourth quarter of 2022 compared with the $56.3 million reported in the fourth quarter of 2021.
The company posted quarterly adjusted EBITDA of $228.2 million, improving 113.1% from the year-earlier quarter.
Financial Update
As of Dec 31, 2022, ERJ’s cash and cash equivalents amounted to $1.82 billion, flat with Dec 31, 2021 levels.
The company had net debt of $721.9 million as of Dec 31, 2022, down from $1,392.2 million as of Dec 31, 2021.
Its adjusted free cash outflow for 2022 was $477.6 million, a significant improvement compared to $292.4 million reported in 2021 due to the divestment of Évora’s facilities in 2Q22, outstanding results and sales performance from Executive Aviation and very strict control over working capital, especially regarding inventories, suppliers, and customer payments in advance.
Guidance
Embraer initiated 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 a free cash flow of $150 million or more for 2023.
Zacks Rank
Embraer currently has a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Defense Releases
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.75 per share for fourth-quarter 2022 in contrast to the Zacks Consensus Estimate of earnings of 5 cents. The bottom line, however, improved from the year-ago quarter’s loss of $7.69 per share.
In the quarter under review, Boeing’s revenues amounted to $19.98 billion, which surpassed the Zacks Consensus Estimate of $19.43 billion by 2.8%. The top line also improved 35% from the year-ago quarter’s figure of $14.79 billion.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share (EPS) of $1.27 beat the Zacks Consensus Estimate of $1.24 per share by 2.4%. Moreover, the bottom line increased 18% from the year-ago quarter’s tally.
Raytheon Technologies’ fourth-quarter sales of $18,093 million missed the Zacks Consensus Estimate of $18,196 million by 0.6%. The sales figure, however, rose 6% from $17,044 million recorded in the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2022 EPS of $3.58, which beat the Zacks Consensus Estimate of $3.53 per share by 1.4%. Quarterly earnings increased 5.6% from $3.39 per share in the year-ago quarter.
General Dynamics’ fourth-quarter revenues of $10,851 million beat the Zacks Consensus Estimate of $10,674 million by 1.7%. Revenues also rose 5.4% from the year-ago quarter’s levels.