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Embraer S.A. (ERJ - Free Report) reported second-quarter 2024 adjusted earnings of 44 cents per American Depository Share (ADS), which beat the Zacks Consensus Estimate of 24 cents by 83.3%. The bottom line also improved 37.5% from 32 cents reported in the prior-year quarter.
The company registered quarterly GAAP earnings of 54 cents per ADS against a loss of 10 cents per ADS in the second quarter of 2023.
Total Revenues
Revenues totaled $1.49 billion, up 15.5% year over year, primarily driven by higher revenues from its Commercial Aviation and Services & Support segments. The reported figure surpassed the Zacks Consensus Estimate by 6.4%.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer delivered 47 jets in the quarter. It delivered 19 commercial and 27 executive (20 light and seven midsize) jets compared with 17 and 30 (19 light and 11 midsize) in the prior-year quarter.
The backlog at the end of the second quarter of 2024 was $21.1 billion, in line with the prior-year quarter’s figure.
Segmental Details
Executive Aviation: This segment recorded revenues worth $335.5 million, down 11% year over year, on account of the lower delivery figures and product mix.
Defense & Security: This unit generated revenues of $187.2 million, which improved a solid 130% year over year. The upside was driven by higher volume of C-390 jets.
Commercial Aviation: This segment recorded revenues worth $553.5 million, up 17% year over year.
Services & Support: This segment recorded revenues worth $403.6 million, up 19% year over year.
Operational Highlights
Embraer’s operating income amounted to $127.9 million compared with $73.2 million in the second quarter of 2023.
The company posted adjusted EBITDA of $190.4 million, which increased a solid 27.9% from the year-earlier quarter’s figure.
Financial Update
As of Jun 30, 2024, ERJ’s cash and cash equivalents amounted to $0.72 billion compared with $1.63 billion as of Dec 31, 2023.
Its adjusted free cash outflow (without Eve) totaled $215.1 million compared with $346.1 million in the prior-year period.
As of Jun 30, 2024, cash outflow from operating activities amounted to $348 million compared with the year-ago period’s figure of $521.4 million.
Guidance
Embraer reiterated its guidance for 2024. It still expects to deliver 72-80 commercial jets and 125-135 Executive Aviation jets in the year.
The company continues to anticipate revenues in the range of $6.0-$6.4 billion. The Zacks Consensus Estimate for revenues is pegged at $6.27 billion, which lies above the midpoint of the company’s guided range.
Embraer still expects adjusted EBIT margin to be between 6.5% and 7.5%. Adjusted free cash flow is projected to be $220 million or more.
Zacks Rank
Embraer currently carries a Zacks Rank #5 (Strong Sell).
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also declined 3.6% from $1.42 billion reported in the year-ago quarter.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line also improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter.
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46.
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.
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Embraer (ERJ) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Embraer S.A. (ERJ - Free Report) reported second-quarter 2024 adjusted earnings of 44 cents per American Depository Share (ADS), which beat the Zacks Consensus Estimate of 24 cents by 83.3%. The bottom line also improved 37.5% from 32 cents reported in the prior-year quarter.
The company registered quarterly GAAP earnings of 54 cents per ADS against a loss of 10 cents per ADS in the second quarter of 2023.
Total Revenues
Revenues totaled $1.49 billion, up 15.5% year over year, primarily driven by higher revenues from its Commercial Aviation and Services & Support segments. The reported figure surpassed the Zacks Consensus Estimate by 6.4%.
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 47 jets in the quarter. It delivered 19 commercial and 27 executive (20 light and seven midsize) jets compared with 17 and 30 (19 light and 11 midsize) in the prior-year quarter.
The backlog at the end of the second quarter of 2024 was $21.1 billion, in line with the prior-year quarter’s figure.
Segmental Details
Executive Aviation: This segment recorded revenues worth $335.5 million, down 11% year over year, on account of the lower delivery figures and product mix.
Defense & Security: This unit generated revenues of $187.2 million, which improved a solid 130% year over year. The upside was driven by higher volume of C-390 jets.
Commercial Aviation: This segment recorded revenues worth $553.5 million, up 17% year over year.
Services & Support: This segment recorded revenues worth $403.6 million, up 19% year over year.
Operational Highlights
Embraer’s operating income amounted to $127.9 million compared with $73.2 million in the second quarter of 2023.
The company posted adjusted EBITDA of $190.4 million, which increased a solid 27.9% from the year-earlier quarter’s figure.
Financial Update
As of Jun 30, 2024, ERJ’s cash and cash equivalents amounted to $0.72 billion compared with $1.63 billion as of Dec 31, 2023.
Its adjusted free cash outflow (without Eve) totaled $215.1 million compared with $346.1 million in the prior-year period.
As of Jun 30, 2024, cash outflow from operating activities amounted to $348 million compared with the year-ago period’s figure of $521.4 million.
Guidance
Embraer reiterated its guidance for 2024. It still expects to deliver 72-80 commercial jets and 125-135 Executive Aviation jets in the year.
The company continues to anticipate revenues in the range of $6.0-$6.4 billion. The Zacks Consensus Estimate for revenues is pegged at $6.27 billion, which lies above the midpoint of the company’s guided range.
Embraer still expects adjusted EBIT margin to be between 6.5% and 7.5%. Adjusted free cash flow is projected to be $220 million or more.
Zacks Rank
Embraer currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also declined 3.6% from $1.42 billion reported in the year-ago quarter.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line also improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter.
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46.
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.