Why Are Embraer Shares Trading Higher Today
Portfolio Pulse from Lekha Gupta
Embraer SA (NYSE:ERJ) reported a Q4 FY23 revenue of $1.975 billion, missing consensus estimates but saw an increase in adjusted EBIT and EBITDA margins compared to the previous year. The company delivered 75 jets, including a military C-390 jet, and announced a firm order backlog of $18.7 billion. Adjusted income per basic ADS beat consensus, and FY24 guidance anticipates 72-80 commercial and 125-135 executive jet deliveries, with revenues of $6.0-$6.4 billion. ERJ shares rose 1.93% in premarket trading.
March 18, 2024 | 1:08 pm
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POSITIVE IMPACT
Embraer SA reported Q4 FY23 earnings with mixed results, missing revenue estimates but exceeding income expectations and showing margin improvement. The company has a strong order backlog and optimistic FY24 guidance.
Despite missing revenue estimates, Embraer's improved margins, strong order backlog, and positive FY24 guidance likely contributed to the premarket stock price increase. The beat on adjusted income per basic ADS and the optimistic outlook for jet deliveries and revenue in FY24 suggest a positive short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100