Embraer(US:ERJ) ZACKSยท2024-08-09 14:21Core Insights - Embraer S.A. reported second-quarter 2024 adjusted earnings of 44 cents per American Depository Share (ADS), exceeding the Zacks Consensus Estimate of 24 cents by 83.3% and improving 37.5% from 32 cents in the prior-year quarter [1] - Total revenues reached $1.49 billion, reflecting a year-over-year increase of 15.5%, driven by higher revenues from Commercial Aviation and Services & Support segments, and surpassing the Zacks Consensus Estimate by 6.4% [2] Financial Performance - The company achieved quarterly GAAP earnings of 54 cents per ADS, a significant improvement from a loss of 10 cents per ADS in the second quarter of 2023 [1] - Operating income was reported at $127.9 million, up from $73.2 million in the same quarter last year [6] - Adjusted EBITDA increased by 27.9% year-over-year to $190.4 million [6] Order & Delivery - Embraer delivered a total of 47 jets in the quarter, comprising 19 commercial and 27 executive jets, compared to 17 commercial and 30 executive jets in the prior-year quarter [3] - The backlog at the end of Q2 2024 stood at $21.1 billion, consistent with the prior-year quarter [3] Segment Performance - Executive Aviation segment revenues were $335.5 million, down 11% year-over-year due to lower delivery figures and product mix [4] - Defense & Security segment revenues surged 130% year-over-year to $187.2 million, driven by increased volume of C-390 jets [4] - Commercial Aviation segment revenues increased by 17% year-over-year to $553.5 million [4] - Services & Support segment revenues rose 19% year-over-year to $403.6 million [5] Cash Flow and Financial Position - As of June 30, 2024, cash and cash equivalents totaled $0.72 billion, down from $1.63 billion as of December 31, 2023 [7] - Adjusted free cash outflow (excluding Eve) was $215.1 million, an improvement from $346.1 million in the prior-year period [7] - Cash outflow from operating activities amounted to $348 million, compared to $521.4 million in the year-ago period [7] Guidance - Embraer reiterated its 2024 guidance, expecting to deliver between 72-80 commercial jets and 125-135 Executive Aviation jets [8] - The company anticipates revenues in the range of $6.0-$6.4 billion, with the Zacks Consensus Estimate at $6.27 billion [9] - Adjusted EBIT margin is projected to be between 6.5% and 7.5%, with adjusted free cash flow expected to be $220 million or more [9]