Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) Announces Quarterly Earnings Results, Misses Estimates By $0.46 EPS

Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) announced its quarterly earnings data on Tuesday. The aerospace company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.87 by ($0.46), Zacks reports. Embraer-Empresa Brasileira de Aeronautica had a return on equity of 11.90% and a net margin of 5.35%. The business had revenue of $2.33 billion during the quarter.

Here are the key takeaways from Embraer-Empresa Brasileira de Aeronautica’s conference call:

• Embraer posted record third-quarter revenue of $2.35 billion and an eighth consecutive record backlog, reaching $35.7 billion, up 14% year over year. Backlogs grew across all four business units, with Defense & Security up 56%.
• The company raised 2026 revenue guidance to $8.4 billion–$8.6 billion and adjusted free cash flow guidance to $700 million or more, while keeping delivery and adjusted EBIT margin ranges unchanged. Quarterly adjusted free cash flow was $628 million, and Embraer ended the quarter in a net cash position.
• Executive Aviation and Services & Support delivered strong results: adjusted EBIT margins were 16% and 17%, respectively, and management sees room for further service-margin improvement toward 17%–18% by the end of the decade. Embraer also targets 200 executive-jet deliveries in 2028, supported by capacity investment.
• Fourth-quarter margin expansion may be limited by concentrated Commercial Aviation deliveries, lower-than-company-average commercial margins, and contract cost adjustments in Defense; management said Defense margins are unlikely to match the strong second- and third-quarter levels. Supply-chain issues have eased but persist for select components, including engines and fuselage parts.

Embraer-Empresa Brasileira de Aeronautica Stock Performance

NYSE EMBJ traded down $1.09 during trading on Wednesday, hitting $81.41. The company’s stock had a trading volume of 361,186 shares, compared to its average volume of 1,385,046. The company has a quick ratio of 0.72, a current ratio of 1.44 and a debt-to-equity ratio of 0.61. The firm has a 50 day moving average price of $74.19 and a 200 day moving average price of $67.82. The firm has a market cap of $14.71 billion, a P/E ratio of 32.96, a price-to-earnings-growth ratio of 1.70 and a beta of 1.50. Embraer-Empresa Brasileira de Aeronautica has a 52 week low of $53.56 and a 52 week high of $83.46.

Institutional Investors Weigh In On Embraer-Empresa Brasileira de Aeronautica

Hedge funds have recently modified their holdings of the business. Russell Investments Group Ltd. bought a new position in Embraer-Empresa Brasileira de Aeronautica during the third quarter worth $39,993,000. RPg Family Wealth Advisory LLC grew its position in Embraer-Empresa Brasileira de Aeronautica by 2.7% in the 2nd quarter. RPg Family Wealth Advisory LLC now owns 289,032 shares of the aerospace company’s stock worth $18,440,000 after purchasing an additional 7,556 shares during the last quarter. Aubrey Capital Management Ltd acquired a new stake in Embraer-Empresa Brasileira de Aeronautica in the 2nd quarter worth $14,904,000. Bank of New York Mellon Corp increased its holdings in shares of Embraer-Empresa Brasileira de Aeronautica by 8.2% during the 1st quarter. Bank of New York Mellon Corp now owns 136,065 shares of the aerospace company’s stock worth $8,074,000 after purchasing an additional 10,346 shares during the period. Finally, AMS Capital Ltda bought a new position in shares of Embraer-Empresa Brasileira de Aeronautica during the 2nd quarter worth about $2,279,000. 34.65% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Wall Street Zen downgraded Embraer-Empresa Brasileira de Aeronautica from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 24th. JPMorgan Chase & Co. increased their price target on shares of Embraer-Empresa Brasileira de Aeronautica from $80.00 to $104.00 and gave the stock an “overweight” rating in a research report on Friday, August 14th. Zacks Research upgraded Embraer-Empresa Brasileira de Aeronautica from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, September 29th. Finally, Weiss Ratings raised Embraer-Empresa Brasileira de Aeronautica from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday. One research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company’s stock. Based on data from MarketBeat.com, Embraer-Empresa Brasileira de Aeronautica presently has a consensus rating of “Buy” and an average target price of $92.50.

Embraer-Empresa Brasileira de Aeronautica Company Profile

Embraer, formerly Empresa Brasileira de Aeronáutica, is a Brazilian aerospace company founded in 1969. Headquartered in São José dos Campos, Brazil, it develops, manufactures and supports aircraft and related aviation products and services. The company’s businesses include commercial aviation, executive aviation, and defense and security. Its offerings include E-Jets and E-Jets E2 commercial aircraft, Phenom and Praetor business jets, and defense aircraft such as the C-390 Millennium transport aircraft and A-29 Super Tucano.