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Embraer (ERJ) Tops Q4 Earnings, Revenues; Backlog Down Y/Y
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Embraer SA (ERJ - Free Report) reported fourth-quarter 2016 adjusted earnings of $1.14 per American Depository Share (ADS) that beat the Zacks Consensus Estimate of 79 cents by 44.3%. Adjusted earnings were also up a massive 612.5% from 16 cents recorded in the year-ago quarter.
For 2016, the company reported adjusted earnings of $1.58 per ADS, up 6% from the year-ago figure of $1.49. The full-year earnings figure also surpassed the Zacks Consensus Estimate of $1.47 by 7.5%.
Revenues
In the fourth quarter, Embraer posted total revenue of $2,027.8 million that surpassed the Zacks Consensus Estimate of $1,867 million by 8.6%. Reported revenues however declined 2.2% year over year owing to lower revenues at the Commercial Aviation and Executive Jets segments.
For 2016, the company reported revenue of $6.22 billion, up 4.9% from the year-ago figure of $5.93 billion. The full-year revenue figure also exceeded the Zacks Consensus Estimate of $6.08 billion.
During the reported quarter, revenues at Embraer’s Commercial Aviation segment declined 7.5%, while Executive Jets segment saw a drop of 10.3%. However, revenues from the Defense & Security segment improved a solid 99.2% year over year.
Order and Delivery
The company delivered a total of 75 jets in the quarter, down 3.8% year over year. The company delivered 32 commercial and 43 executive jets to each of the commercial aviation and business aviation markets.
The company had delivered 33 jets to the commercial aviation market and 45 jets to the business aviation market in fourth-quarter 2015. In total, the company had delivered a total of 78 jets a year ago.
During 2016, the company delivered a total of 225 jets, up 1.8% from 221 jets delivered in 2015. The company supplied 108 commercial and 117 executive jets to the commercial aviation and business aviation markets, respectively, in 2016; compared to the respective year-ago figures of 101 and 120.
In the fourth quarter, Embraer’s Commercial Aviation unit supplied 26 E175s, 3 E190s and 3 E195 jets. The rest were delivered to Business Aviation, which included 25 light and 18 large jets.
In 2016, Embraer’s Commercial Aviation unit supplied 90 E175s, 11 E190s and 7 E195 jets. The rest were delivered to Business Aviation, which included 73 light and 44 large jets.
Embraer reported an order backlog of $19.6 billion as of Dec 31, 2016, compared with $22.5 billion at 2015-end. The year-end figure also indicates a 9.2% decline from $21.4 billion recorded in the prior quarter.
Operational Highlights
In the quarter under review, Embraer’s cost of sales and services was $1,620.6 million, down from $1,724.7 million a year ago.
As a result, the company’s gross profit improved 14.1% to $407.2 million in the fourth quarter.
The company reported quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $348 million, compared with $177.9 million in the prior-year quarter.
Financial Update
As of Dec 31, 2016, cash and cash equivalents were $1,241.5 million, compared with $2,165.5 million as of Sep 30, 2015.
At the end of 2016, the company had net debt of $574.7 million.
In 2016, net cash outflow from operating activities was $20.5 million as against cash inflow of $862.5 million a year ago.
In 2016, the company’s capital expenditure was around $232.3 million, while free cash outflow was $359.2 million. Free cash inflow in 2015 was $215.4 million.
Guidance
Embraer expects its 2017 revenue to remain in the range of $5.7–$6.1 billion. Defense & Security revenues are expected in the $0.80–$0.90 billion band, while Commercial Aviation revenues are expected in the range of $3.25–$3.40 billion. For Executive Jets segments, the company anticipates revenues in the band of $1.60-$1.75 billion.
The company expects to deliver 97–102 jets in Commercial Aviation segment along with 70–80 large jets and 35–45 light jets in Executive Jets segment in 2017.
It expects EBIT margin in the range of 8–9% and EBITDA margin of 13.5–14.5%.
For 2017, the company plans to invest $650 million, including capital expenditure of $200 million.
Peer Releases
Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, which surpassed the Zacks Consensus Estimate of $3.04 by 6.9%.
Raytheon Company reported fourth-quarter 2016 adjusted earnings from continuing operations of $1.88 per share, beating the Zacks Consensus Estimate of $1.86 by 1.1%.
General Dynamics Corp. (GD - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $2.62 per share, which beat the Zacks Consensus Estimate of $2.54 by 3.1%.
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Embraer (ERJ) Tops Q4 Earnings, Revenues; Backlog Down Y/Y
Embraer SA (ERJ - Free Report) reported fourth-quarter 2016 adjusted earnings of $1.14 per American Depository Share (ADS) that beat the Zacks Consensus Estimate of 79 cents by 44.3%. Adjusted earnings were also up a massive 612.5% from 16 cents recorded in the year-ago quarter.
For 2016, the company reported adjusted earnings of $1.58 per ADS, up 6% from the year-ago figure of $1.49. The full-year earnings figure also surpassed the Zacks Consensus Estimate of $1.47 by 7.5%.
Revenues
In the fourth quarter, Embraer posted total revenue of $2,027.8 million that surpassed the Zacks Consensus Estimate of $1,867 million by 8.6%. Reported revenues however declined 2.2% year over year owing to lower revenues at the Commercial Aviation and Executive Jets segments.
For 2016, the company reported revenue of $6.22 billion, up 4.9% from the year-ago figure of $5.93 billion. The full-year revenue figure also exceeded the Zacks Consensus Estimate of $6.08 billion.
During the reported quarter, revenues at Embraer’s Commercial Aviation segment declined 7.5%, while Executive Jets segment saw a drop of 10.3%. However, revenues from the Defense & Security segment improved a solid 99.2% year over year.
Order and Delivery
The company delivered a total of 75 jets in the quarter, down 3.8% year over year. The company delivered 32 commercial and 43 executive jets to each of the commercial aviation and business aviation markets.
The company had delivered 33 jets to the commercial aviation market and 45 jets to the business aviation market in fourth-quarter 2015. In total, the company had delivered a total of 78 jets a year ago.
During 2016, the company delivered a total of 225 jets, up 1.8% from 221 jets delivered in 2015. The company supplied 108 commercial and 117 executive jets to the commercial aviation and business aviation markets, respectively, in 2016; compared to the respective year-ago figures of 101 and 120.
In the fourth quarter, Embraer’s Commercial Aviation unit supplied 26 E175s, 3 E190s and 3 E195 jets. The rest were delivered to Business Aviation, which included 25 light and 18 large jets.
In 2016, Embraer’s Commercial Aviation unit supplied 90 E175s, 11 E190s and 7 E195 jets. The rest were delivered to Business Aviation, which included 73 light and 44 large jets.
Embraer reported an order backlog of $19.6 billion as of Dec 31, 2016, compared with $22.5 billion at 2015-end. The year-end figure also indicates a 9.2% decline from $21.4 billion recorded in the prior quarter.
Operational Highlights
In the quarter under review, Embraer’s cost of sales and services was $1,620.6 million, down from $1,724.7 million a year ago.
As a result, the company’s gross profit improved 14.1% to $407.2 million in the fourth quarter.
The company reported quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $348 million, compared with $177.9 million in the prior-year quarter.
Financial Update
As of Dec 31, 2016, cash and cash equivalents were $1,241.5 million, compared with $2,165.5 million as of Sep 30, 2015.
At the end of 2016, the company had net debt of $574.7 million.
In 2016, net cash outflow from operating activities was $20.5 million as against cash inflow of $862.5 million a year ago.
In 2016, the company’s capital expenditure was around $232.3 million, while free cash outflow was $359.2 million. Free cash inflow in 2015 was $215.4 million.
Guidance
Embraer expects its 2017 revenue to remain in the range of $5.7–$6.1 billion. Defense & Security revenues are expected in the $0.80–$0.90 billion band, while Commercial Aviation revenues are expected in the range of $3.25–$3.40 billion. For Executive Jets segments, the company anticipates revenues in the band of $1.60-$1.75 billion.
The company expects to deliver 97–102 jets in Commercial Aviation segment along with 70–80 large jets and 35–45 light jets in Executive Jets segment in 2017.
It expects EBIT margin in the range of 8–9% and EBITDA margin of 13.5–14.5%.
For 2017, the company plans to invest $650 million, including capital expenditure of $200 million.
Peer Releases
Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, which surpassed the Zacks Consensus Estimate of $3.04 by 6.9%.
Raytheon Company reported fourth-quarter 2016 adjusted earnings from continuing operations of $1.88 per share, beating the Zacks Consensus Estimate of $1.86 by 1.1%.
General Dynamics Corp. (GD - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $2.62 per share, which beat the Zacks Consensus Estimate of $2.54 by 3.1%.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>