), the largest Brazilian aircraft manufacturer, made a delivery of
its EMBRAER 175 jet to Belavia, the 100% state-owned flag-carrier
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The aircraft delivered is leased from Air Lease Corporation of Los
Angeles and will fly on European routes from Minsk International
airport in Belarus. The aircraft manufacturer is still due to
delivery another E175 jet to Belavia by the end of this year. E175
jet supports 12 business class and 64 economy class seats.
Embraer over time has been growing its presence in major parts of
the world, especially Europe and Asia. Belavia is the company's
ninth customer in Eastern Europe and Central Asia. Across the
world, as many as 340 E170s/E175s jets are operating, clearly
depicting the growing preferences for the company's aircrafts.
In addition to this contract, last week Embraer Defense and
Security signed an agreement with the Brazilian Air Force (FAB) for
a total value of roughly $130 million, including $98 million from
routine logistics support and US$32 million in optional services.
Under this Embraer Support Solution for the Government (ESSG)
program, the company will be providing logistics support and
services for the fleet of 24 ERJ-145 (ERJ-145, ERJ-135, Legacy 600,
RS, and AEW&C) family operated by FAB.
The current Zacks Consensus Estimate for the third quarter of 2012
is 59 cents, reflecting a year-over-year decline of 13.64%.
Estimates for 2012 and 2013 are $2.24 and $3.10, reflecting annual
growth of 105.5% and 38.4%, respectively.
We currently maintain a Neutral recommendation on Embraer. The
stock also bears a Zacks #3 Rank, implying a short-term (1-3
months) Hold rating. The company's major competitors
Northrop Grumman Corporation
) have a Zacks #3 (Hold) Rank while
Lockheed Martin Corporation
) holds a Zacks #2 (Buy) Rank.