) fourth-quarter earnings of $2.05 per American Depository Shares
(ADS) increased 177.0% from 74 cents per ADS in the prior-year
quarter. The reported figure also beat the Zacks Consensus
Estimate of $1.20 by 70.8%.
In 2013, Embraer reported earnings of $2.91 per ADS compared
with $2.32 per ADS in 2012. The reported figure was also ahead of
the Zacks Consensus Estimate of $1.79 by 62.6%.
The uptrend was backed by strong demand for its commercial and
Net revenue in the quarter was $2.3 billion, up from $1.9 billion
in the year-ago quarter and ahead of the Zacks Consensus Estimate
of $2.2 billion by 7.0%.
In 2013, net revenues were $6.2 billion, up 1.1% from $6.1
billion in 2012.
Order and Delivery
In the quarter ending Dec 31, the plane maker delivered a total
of 85 jets, higher than 44 deliveries made in the last quarter.
The quarterly deliveries also exceeded the year-ago level of 76.
Of the total deliveries this quarter, 32 jets were made to the
commercial aviation market including 14 of E-190, 12 E-175, 5
E-195 and 1 E-170, while the remaining 53 jets were delivered to
the executive aviation market inclusive of 38 light and 15 large
Including an order of 60 E175 jets from American Airlines Group
and a satellite contract under the Defense & Security
segment, Embraer's firm order backlog totaled $18.2 billion,
reflecting an increase of 2.2% from the last reported quarter
Embraer's order backlog comprised 188 E-175, 100 E-175-E2, 73
E-190, 25 E-195-E2, 25 E-190-E2, 17 E-195 and 1 E-170 jets.
Commercial Aviation revenues, comprising 48.6% of total quarterly
revenue, increased 29.7% year over year to $1.2 billion.
Executive Jets revenues, representing 34.1% of total quarterly
revenue, grew 10.2% year over year to $0.8 billion. The segment
delivered 53 jets, in line with deliveries in the prior-year
Defense & Security generated revenues of $0.4 billion that
accounted for 16.0% of total fourth-quarter sales and increased
24.4% from the year-ago period.
The Other category accounted for 1.3% of total fourth quarter
revenue, increasing almost 20.2% year over year to $0.03 billion.
Cash and cash equivalents were $1.7 billion at the end of the
reported quarter, compared with $1.8 billion at the end of fourth
As of Dec 31, 2013, the company's total debt was $2.1 billion, up
from $2.0 billion as of fourth quarter 2012.
In the fourth quarter 2013, Embraer's net cash from operating
activities was $0.3 billion versus $0.5 billion in fourth quarter
Capital expenditure was $0.15 billion in the reported quarter,
down from $0.16 billion in the fourth quarter of 2012.
Embraer expects double-digit growth in the Defense & Security
segment due to the continuous progress in the military transport
(KC-390) as well as the Border Monitoring system, Super Tucano
LAS program, and satellite programs.
Embraer projected total revenue in the range of $6.0 billion to
$6.5 billion for 2014. It also expects to deliver 92 to 97
commercial jets, 80 to 90 light executive jets and 25 to 30 large
executive jets in 2014. The company expects to deliver a higher
proportion of smaller E-Jets and the E175 model aircraft at the
Commercial Aviation segment.
The company also expects to realize an EBIT margin between 9.0%
and 9.5% for 2014.
Total investment is expected at around $0.7 billion for 2014.
This expenditure comprises $0.08 billion, $0.3 billion and $0.2
billion of research, product development and capital expenditure
Northrop Grumman Corp.
) reported fourth quarter 2013 earnings per share of $2.00,
comfortably surpassing the Zacks Consensus Estimate of $1.94 by
Lockheed Martin Corp.
) posted fourth quarter 2013 earnings of $2.38 per share,
comfortably surpassing the Zacks Consensus Estimate of $2.00 by
General Dynamics Corp.
) announced fourth-quarter 2013 operating earnings of $1.76 per
share, in line with the Zacks Consensus Estimate.
Embraer SA has a Zacks Rank #3 (Hold).
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
GENL DYNAMICS (GD): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
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