Earnings Preview: Embraer

Embraer ERJ is set to give its latest quarterly earnings report on Tuesday, 2025-05-06. Here's what investors need to know before the announcement.

Analysts estimate that Embraer will report an earnings per share (EPS) of $0.10.

Investors in Embraer are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.60, leading to a 0.32% increase in the share price on the subsequent day.

Here's a look at Embraer's past performance and the resulting price change:

Stock Performance

Shares of Embraer were trading at $46.72 as of May 02. Over the last 52-week period, shares are up 74.82%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about Embraer

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Embraer.

A total of 2 analyst ratings have been received for Embraer, with the consensus rating being Buy. The average one-year price target stands at $44.5, suggesting a potential 4.75% downside.

Understanding Analyst Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Huntington Ingalls Indus, StandardAero and ATI, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Huntington Ingalls Indus, with an average 1-year price target of $215.8, suggesting a potential 361.9% upside.
• Analysts currently favor an Neutral trajectory for StandardAero, with an average 1-year price target of $30.0, suggesting a potential 35.79% downside.
• Analysts currently favor an Outperform trajectory for ATI, with an average 1-year price target of $73.0, suggesting a potential 56.25% upside.

Analysis Summary for Peers

The peer analysis summary provides a snapshot of key metrics for Huntington Ingalls Indus, StandardAero and ATI, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Embraer ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Delving into Embraer's Background

Embraer SA based in Sao Paulo, Brazil, manufacturer of jets. Its focus is to achieve customer satisfaction with and services addressing the commercial airline, executive jets, and defense and security markets. It has developed a customer-centric technology-driven portfolio of commercial aviation products and services that allows it to build long-term relationships with clients in the commercial aviation, executive jets, and defense and security markets. It operates through the various segments namely Commercial Aviation, Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from the Commercial Aviation segment.

Financial Insights: Embraer

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Embraer showcased positive performance, achieving a revenue growth rate of 17.03% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Embraer's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.97%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Embraer's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.47%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Embraer's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.39%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Embraer's debt-to-equity ratio surpasses industry norms, standing at 0.85. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Embraer visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.