Embraer (NYSE:ERJ) Shares Gap Down Following Weak Earnings

Embraer SA (NYSE:ERJ) shares gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $16.41, but opened at $16.45. Embraer shares last traded at $16.45, with a volume of 51,165 shares traded.

The aerospace company reported ($0.26) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.18) by ($0.08). Embraer had a negative return on equity of 2.84% and a negative net margin of 1.49%. The company had revenue of $1.18 billion during the quarter, compared to analysts’ expectations of $1.32 billion. During the same quarter last year, the firm posted $0.03 EPS. Embraer’s revenue for the quarter was up 1.4% compared to the same quarter last year.

A number of equities analysts recently issued reports on the company. Cowen restated a “hold” rating and set a $22.00 price objective on shares of Embraer in a report on Tuesday. UBS Group restated a “buy” rating and set a $21.00 price objective (down previously from $23.00) on shares of Embraer in a report on Thursday. William Blair restated a “market perform” rating on shares of Embraer in a report on Wednesday, August 14th. Finally, Zacks Investment Research cut Embraer from a “strong-buy” rating to a “hold” rating and set a $19.00 price objective for the company. in a report on Wednesday, October 16th. Five analysts have rated the stock with a hold rating and two have given a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $22.70.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Stevens Capital Management LP raised its position in Embraer by 17.4% during the 2nd quarter. Stevens Capital Management LP now owns 23,950 shares of the aerospace company’s stock valued at $482,000 after purchasing an additional 3,542 shares in the last quarter. Aperio Group LLC raised its position in Embraer by 82.0% during the 2nd quarter. Aperio Group LLC now owns 82,590 shares of the aerospace company’s stock valued at $1,663,000 after purchasing an additional 37,217 shares in the last quarter. Congress Park Capital LLC raised its position in Embraer by 76.6% during the 2nd quarter. Congress Park Capital LLC now owns 133,075 shares of the aerospace company’s stock valued at $2,743,000 after purchasing an additional 57,700 shares in the last quarter. Atria Investments LLC bought a new stake in Embraer during the 2nd quarter valued at $3,344,000. Finally, Brandes Investment Partners LP raised its position in Embraer by 0.5% during the 2nd quarter. Brandes Investment Partners LP now owns 20,024,471 shares of the aerospace company’s stock valued at $407,221,000 after purchasing an additional 92,637 shares in the last quarter. Institutional investors own 44.18% of the company’s stock.

The company has a current ratio of 2.17, a quick ratio of 1.24 and a debt-to-equity ratio of 0.85. The stock has a 50-day simple moving average of $17.27 and a two-hundred day simple moving average of $18.72. The firm has a market capitalization of $3.07 billion, a P/E ratio of -55.20 and a beta of -0.10.

Embraer Company Profile (NYSE:ERJ)

Embraer SA designs, develops, manufactures, and sells aircraft and systems in Brazil, North America, Latin America, the Asia Pacific, Europe, and internationally. It operates through Commercial Aviation, Defense and Security, Executive Jets, Service & Support, and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets; and provides support services, as well as leases aircraft.

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