We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Embraer's (ERJ) Order Book Gets a Boost at Paris Air Show
Read MoreHide Full Article
Embraer S.A. (ERJ - Free Report) recently clinched lucrative deals for its E-Jets at the Paris Air Show, thus highlighting the reliability and efficiency this jetliner offers to its customers. This generates an influx of orders for the company.
Jet Orders for Embraer at the Paris Air Show
Embraer’s longstanding customer, American Airlines, offered to buy seven new E175s from its portfolio of E-jets at the Paris Air Show. The order will take Embraer’s fleet in the airlines to 141 aircraft by the end of 2024, thus highlighting the significance of the E175 in fostering connectivity throughout the United States.
At the Paris Air Show, Embraer also confirmed a firm commitment to supply six E195-E2 aircraft to Binter Canarias, which takes the order book from this Spanish airline to 16 E195-E2 jets. The latest order marks the fourth consecutive E2 order from Binter.
The aforementioned orders bear testimony to Embraer’s product quality, reliability and performance, which assures consistency in the inflow of revenues and provides the company with a competitive edge.
Opportunities Ahead
In its latest 20-Year Market Outlook, Embraer stated that world passenger traffic is likely to return to the 2019 levels by 2024, with revenue passenger kilometers projected to grow by 3.2% annually through 2042. This growth is poised to be fueled by a continuous recovery in travel demand after a downturn due to the pandemic.
The company expects 11,000 new jets & turboprops demand in the next two decades, which boast a value of $650 billion. Embraer also sees the potential demand for aircraft in the up-to-150-seat category in the days ahead.
The anticipated growth unfolds significant opportunities for jet manufacturers like Embraer to continue to witness a significant order inflow for jets.
Peers at the Paris Air Show
Apart from Embraer, aircraft manufacturers in the industry that reached potential supply deals at the most prestigious event aerospace event are as follows:
Airbus (EADSY - Free Report) : Among some significant deals, Airbus inked a major order to supply 500 of its A320 family aircraft at the Paris Air Show 2023 to Indigo, thereby marking the biggest order in commercial aviation history.
EADSY boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for its 2023 sales indicates an 18.4% improvement over 2022’s reported figure.
Boeing (BA - Free Report) : Amid significant purchase agreements, the key order was from Boeing’s longstanding client, Air India, which confirmed to invest in 290 new Boeing jets, thus marking the biggest order from South Asia for Boeing. The aerospace giant also secured an order from Avolon for 40 737 MAX airplanes. Meanwhile, Air Algérie confirmed to purchase BA’s eight 737-9 jets and two 737-800 Boeing Converted Freighters.
Boeing boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for its 2023 sales indicates an 18% improvement over 2022’s reported figure.
Price Movement
In the past year, shares of Embraer have rallied 54% against the industry’s decline of 1.2%.
The Zacks Consensus Estimate for Spire’s 2023 sales suggests a growth rate of 32.9% from the prior-year reported figure. The Zacks Consensus Estimate for Spire’s 2024 sales calls for a growth rate of 34.3% from the prior-year estimated figure.
SPIR reported an earnings surprise of 16.67% in the last reported quarter. The four-quarter average earnings surprise for the company is 10.37%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Embraer's (ERJ) Order Book Gets a Boost at Paris Air Show
Embraer S.A. (ERJ - Free Report) recently clinched lucrative deals for its E-Jets at the Paris Air Show, thus highlighting the reliability and efficiency this jetliner offers to its customers. This generates an influx of orders for the company.
Jet Orders for Embraer at the Paris Air Show
Embraer’s longstanding customer, American Airlines, offered to buy seven new E175s from its portfolio of E-jets at the Paris Air Show. The order will take Embraer’s fleet in the airlines to 141 aircraft by the end of 2024, thus highlighting the significance of the E175 in fostering connectivity throughout the United States.
At the Paris Air Show, Embraer also confirmed a firm commitment to supply six E195-E2 aircraft to Binter Canarias, which takes the order book from this Spanish airline to 16 E195-E2 jets. The latest order marks the fourth consecutive E2 order from Binter.
The aforementioned orders bear testimony to Embraer’s product quality, reliability and performance, which assures consistency in the inflow of revenues and provides the company with a competitive edge.
Opportunities Ahead
In its latest 20-Year Market Outlook, Embraer stated that world passenger traffic is likely to return to the 2019 levels by 2024, with revenue passenger kilometers projected to grow by 3.2% annually through 2042. This growth is poised to be fueled by a continuous recovery in travel demand after a downturn due to the pandemic.
The company expects 11,000 new jets & turboprops demand in the next two decades, which boast a value of $650 billion. Embraer also sees the potential demand for aircraft in the up-to-150-seat category in the days ahead.
The anticipated growth unfolds significant opportunities for jet manufacturers like Embraer to continue to witness a significant order inflow for jets.
Peers at the Paris Air Show
Apart from Embraer, aircraft manufacturers in the industry that reached potential supply deals at the most prestigious event aerospace event are as follows:
Airbus (EADSY - Free Report) : Among some significant deals, Airbus inked a major order to supply 500 of its A320 family aircraft at the Paris Air Show 2023 to Indigo, thereby marking the biggest order in commercial aviation history.
EADSY boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for its 2023 sales indicates an 18.4% improvement over 2022’s reported figure.
Boeing (BA - Free Report) : Amid significant purchase agreements, the key order was from Boeing’s longstanding client, Air India, which confirmed to invest in 290 new Boeing jets, thus marking the biggest order from South Asia for Boeing. The aerospace giant also secured an order from Avolon for 40 737 MAX airplanes. Meanwhile, Air Algérie confirmed to purchase BA’s eight 737-9 jets and two 737-800 Boeing Converted Freighters.
Boeing boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for its 2023 sales indicates an 18% improvement over 2022’s reported figure.
Price Movement
In the past year, shares of Embraer have rallied 54% against the industry’s decline of 1.2%.
Image Source: Shutterstock
Zacks Rank
Embraer currently carries a Zacks Rank #3 (Hold). One better-ranked stock in the same industry is Spire (SPIR - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Spire’s 2023 sales suggests a growth rate of 32.9% from the prior-year reported figure. The Zacks Consensus Estimate for Spire’s 2024 sales calls for a growth rate of 34.3% from the prior-year estimated figure.
SPIR reported an earnings surprise of 16.67% in the last reported quarter. The four-quarter average earnings surprise for the company is 10.37%.