Shares in Brazil's Embraer rise as it reaffirms 2022 forecasts
Reuters
Published Aug 04, 2022 06:54AM ET
Updated Aug 04, 2022 10:42AM ET
By Gabriel Araujo
SAO PAULO (Reuters) -Brazilian planemaker Embraer SA (NYSE:ERJ) on Thursday stuck with its financial and delivery outlooks for 2022, driving its shares higher as it reported a second-quarter adjusted net profit down 9.6% from a year earlier.
Shares in the company rose by as much as 5.6% in early morning, outperforming Brazil's Bovespa stock index which was up 1.1%.
Embraer said it was sticking to its previously announced full-year forecasts which include revenue between $4.5 billion and $5 billion and deliveries of 100 to 110 executive jets and 60 to 70 commercial jets.
Analysts at Santander (BME:SAN) said some investors were questioning the risks of Embraer missing its guidance given the current supply chain issues.
In a call with analysts, chief executive Francisco Gomes Neto said the company was "cautiously optimistic" supply chain disruptions wouldn't derail its outlook.
Embraer's quarterly adjusted net income reached $39.4 million, recovering from the $78.5 million net loss seen in the previous quarter, driven by its product mix, price hikes and foreign exchange gains, according to a securities filing.
Revenue came in at $1.02 billion, down roughly 10% amid lower deliveries in the Commercial and Defense & Security units, which were partially offset by higher revenues in Services & Support.
Embraer had already reported that second-quarter deliveries totaled 32 jets, falling just shy of the 34 jets delivered in the same period last year but gaining pace after a lukewarm first quarter.
Chief financial officer Antonio Carlos Garcia said deliveries were running at a good pace and tend to be historically concentrated in the second half.
He added adjusted EBITDA margin should be at the high-end of the 8%-9% forecast this year.
The world's No.3 planemaker behind Boeing (NYSE:BA) Co and Airbus SE (OTC:EADSY) also highlighted a 102% free cash flow improvement to $91.2 million in the quarter, citing the divestment from its Evora facilities in Portugal and the initial public offering of its electric aircraft unit Eve Holding Inc.
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Written By: Reuters
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