Thursday, March 5, 2015

Embraer (ERJ) Stock Falls After Earnings Report

NEW YORK (TheStreet) -- Shares of Embraer were falling 8.1% to $32.06 on heavy trading volume Thursday after the commercial airplane manufacturer reported its fourth quarter results. Embraer reported earnings of 50 cents a share for the fourth quarter, though it may not be comparable to analysts' estimates of 91 cents a share. Revenue fell 10.9% year over year to $2.05 billion for the quarter, compared to analysts' estimates of $2.14 billion. CFO Jose Antonio Filippo said Embraer is still working to collect unpaid accounts from the Brazilian government, according to Reuters. Embraer said that it expects to deliver 90 to 100 planes to airlines in 2015, up from 92 planes delivered in 2014. About 4.7 million shares of Embraer were traded by 1:53 p.m. Thursday, above the company's average trading volume of about 1 million shares a day. TheStreet Ratings team rates EMBRAER SA as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate EMBRAER SA (ERJ) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income." You can view the full analysis from the report here: ERJ Ratings Report ERJ data by YCharts


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