Why Are Embraer Shares Trading Lower Today
Benzinga2022-03-11
- Embraer SA (NYSE:ERJ) reported fourth-quarter revenue of $1.3 billion, a decline of 29.3% year-over-year.
- Adjusted income per basic ADS was $0.3116 versus $(0.0679) last year.
- Embraer delivered 55 jets in Q4, of which 16 were commercial aircraft, and 39 were executive jets. It delivered a total of 141 jets in FY21.
- Also Read: Embraer Enters Air Freight Market With Passenger To Freight Conversions
- The company had a firm order backlog of $17.0 billion at 4Q21 end. Book to bill in excess 2:1 for Commercial and Executive.
- Adjusted EBIT margin improved to 4.3% from 4.2% in 4Q20. Adjusted EBITDA margin expanded to 8.2% from 7.9% in 4Q20.
- The net Debt/EBITDA ratio decreased from 5.6x in 2019 to 3.5x in FY21.
- The company reported a sharp improvement in Free Cash Flow (FCF) in 4Q21, with cash generation of $452.6 million, resulting in a full-year FCF of $292.4 million.
- Related: EVTOL Company Eve Gets Spin Out From Embraer, SPAC Deal: What Investors Should Know
- FY22 Guidance (without Eve): Embraer expects commercial jet deliveries of 60-70 aircraft and executive jet deliveries of 100-110 aircraft.
- It expects revenues of $4.5 billion - $5 billion, Adjusted EBIT margin of 3.5% - 4.5%, Adjusted EBITDA margin of 8.0% - 9.0%, and FCF of $50 million or better.
- Price Action: ERJ shares are trading lower by 15.1% at $11.26 on the last check Thursday.
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