Embraer (NYSE:ERJ) earnings for the jet company’s fiscal first quarter of 2020 have ERJ stock dipping lower on Monday. This comes after reporting adjusted losses per share of 57 cents. That’s a major miss next to Wall Street’s estimate of -29 cents per share. Its revenue of $633.8 million is also far from analysts’ estimates of $934.97 million.
Let’s take a deeper dive into the most recent Embraer earnings report below.
- Adjusted per-share losses are 67.7% wider compared to -34 cents from the same time last year.
- Revenue for the quarter comes in 23% lower than the $823.3 million reported in the fiscal first quarter of 2019.
- The Embraer earnings report also has its net loss for the quarter coming in at $292 million.
- That’s 587.1% worse than the company’s net loss of $42.5 million during the same period of the year prior.
- Net debt in the quarter increased by 20.9% from $1.1 billion to $1.33 billion in fiscal Q1 2020.
Embraer notes that a failed deal with Boeing (NYSE:BA) affected its first-quarter earnings.
“Historically, Embraer seasonally has fewer deliveries during the first quarter of the year, and in 2020 in particular, commercial aircraft deliveries for the first quarter were also negatively impacted by the steps taken to effect the separation of Embraer’s Commercial Aviation division in connection with the now-terminated strategic partnership with The Boeing Company in January, a month in which no deliveries took place.”
Embraer continues to suspend its outlook for fiscal 2020 due to the novel coronavirus. That makes sense with travel hindered and many other companies are doing the same.
ERJ stock was down 1.3% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.