- Embraer’s second quarter net revenue reached $1.82 billion, surpassing estimates of $1.78 billion and marking a 22% year-over-year increase.
- The company reported an adjusted net loss of $4.7 million, contrasting with an $80.4 million profit from the previous year, missing the estimated profit of $67.8 million.
- Adjusted EBITDA was $245.5 million, a 29% increase year-over-year, exceeding the estimated $181.2 million.
- The adjusted EBITDA margin improved to 13.5% from 12.7% year-over-year.
- Adjusted EBIT rose by 38% year-over-year to $191.8 million, with a margin increase to 10.5% from 9.3%.
- Negative adjusted free cash flow was reported at $161.6 million, a 25% decrease year-over-year.
- Net revenue in local currency terms was R$10.27 billion, a 31% increase year-over-year.
- Net income attributable to holders decreased by 14% year-over-year to R$448.9 million.
- Embraer’s year forecast remains unchanged with expected revenue between $7 billion and $7.5 billion.
- The company projects deliveries of 145 to 155 executive jets and 77 to 85 commercial jets.
- The adjusted EBIT margin is anticipated to be between 7.5% and 8.3%.
- Free cash flow is expected to be at least $200 million.
- Current analyst ratings are 3 buys, 1 hold, and 1 sell.
A look at Embraer SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Embraer SA, a company that manufactures and sells commercial, corporate, and defense aircraft, has received varying Smart Scores indicating its outlook. With a strong growth score of 5 and momentum score of 5, the company seems poised for long-term success in terms of expansion and market performance. This suggests that Embraer SA is making strategic moves to grow its business and is currently enjoying positive market momentum.
Although Embraer SA scores lower in terms of value and dividend at 2, and resilience at 3, the high growth and momentum scores indicate a promising future for the company. As it mainly targets commercial airlines in the United States and Europe, as well as governments in Europe and Latin America, Embraer SA may see continued success and market relevance in the long term.
### Summary: Embraer SA focuses on manufacturing and selling commercial, corporate, and defense aircraft. It also provides maintenance services and spare parts for its jets, catering to commercial airlines in the US and Europe, as well as governments in Europe and Latin America. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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