According to Zacks, “Embraer continues to lead the 70- to 130-seat commercial jet market. Moreover, Embraer sees more room for growth given the rising air traffic. In its 20-year Market Outlook, the company stated that it expects total market deliveries of 6,400 jets – 2,300 units in the 70- to 90-seat segment and 4,100 units in the 90- to 130-seat segment by 2035. In the near term, the company expects to invest $325 million in product development in 2016 mainly on the new generation of planes. Further the company’s investment plans for product development in 2016 will likely ensure strong demand for its products and drive bottom-line growth. However, Embraer operates in a highly competitive commercial aircraft manufacturing industry, which requires it to invest heavily in technology and performance enhancement to meet growing demand in this industry. Also, the company remains highly exposed to foreign currency fluctuations.”
ERJ has been the subject of several other research reports. Scotiabank upgraded Embraer SA from a sector perform rating to an outperform rating in a research note on Friday, October 14th. Goldman Sachs Group Inc. upgraded Embraer SA from a neutral rating to a buy rating and set a $23.00 price target for the company in a research note on Wednesday, October 12th. JPMorgan Chase & Co. initiated coverage on Embraer SA in a research note on Thursday, October 6th. They issued an overweight rating for the company. Cowen and Company upgraded Embraer SA from a market perform rating to an outperform rating and set a $24.00 price target for the company in a research note on Tuesday. Finally, HSBC cut Embraer SA from a buy rating to a hold rating and set a $19.00 price target for the company. in a research note on Monday, August 1st. Four investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. Embraer SA currently has a consensus rating of Buy and an average price target of $25.14.
Embraer SA (NYSE:ERJ) traded down 1.41% on Tuesday, reaching $19.58. The company had a trading volume of 237,514 shares. The stock’s 50-day moving average price is $18.35 and its 200-day moving average price is $20.56. The stock has a market capitalization of $14.39 billion, a P/E ratio of 529.19 and a beta of 0.83. Embraer SA has a 12-month low of $17.06 and a 12-month high of $32.50.
Embraer SA (NYSE:ERJ) last announced its quarterly earnings data on Friday, July 29th. The company reported ($0.54) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.50 by $1.04. The company had revenue of $1.37 billion for the quarter, compared to analysts’ expectations of $1.44 billion. Embraer SA had a net margin of 0.10% and a return on equity of 3.74%. The firm’s quarterly revenue was down 9.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.71 EPS. On average, equities research analysts anticipate that Embraer SA will post $0.98 EPS for the current fiscal year.
A number of hedge funds have recently added to or reduced their stakes in ERJ. Capital Fund Management S.A. raised its stake in Embraer SA by 854.1% in the second quarter. Capital Fund Management S.A. now owns 293,147 shares of the company’s stock valued at $6,367,000 after buying an additional 262,423 shares in the last quarter. JFS Wealth Advisors LLC raised its stake in Embraer SA by 14.4% in the second quarter. JFS Wealth Advisors LLC now owns 4,998 shares of the company’s stock valued at $109,000 after buying an additional 631 shares in the last quarter. Bank of Montreal Can bought a new stake in Embraer SA during the second quarter valued at about $5,791,000. Telemus Capital LLC raised its stake in Embraer SA by 17.5% in the second quarter. Telemus Capital LLC now owns 9,332 shares of the company’s stock valued at $203,000 after buying an additional 1,388 shares in the last quarter. Finally, BNP Paribas Arbitrage SA raised its stake in Embraer SA by 181.2% in the second quarter. BNP Paribas Arbitrage SA now owns 27,978 shares of the company’s stock valued at $608,000 after buying an additional 18,027 shares in the last quarter. 51.92% of the stock is owned by institutional investors and hedge funds.
Embraer SA Company Profile
Embraer SA is a Brazil-based company that produces aircraft for commercial and executive aviation, and for defense and security purposes and related services. The Company’s segments include Commercial aviation business, Defense and security business, Executive Jet business and Other. Its Commercial Aviation business segment mainly involves the development, production and sale of commercial jets, and rendering of support services.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Embraer SA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Embraer SA and related companies with MarketBeat.com's FREE daily email newsletter.