Embraer SA beats by $0.22, beats on revs; reaffirms FY24 revs guidance (27.08)
- Reports Q2 (Jun) earnings of $0.44 per share, $0.22 better than the FactSet Consensus of $0.22; revenues rose 15.6% year/year to $1.49 bln vs the $1.44 bln FactSet Consensus.
- Firm order backlog of $21.1 billion in 2Q24 -- a 7-year high, up more than 20% annually.
- Co reaffirms guidance for FY24, sees FY24 revs of $6.0-6.4 bln vs. $6.25 bln FactSet Consensus.
- Management believes current estimates are still valid and represent evenly balanced risks and opportunities for full year operations. Commercial Aviation deliveries between 72 and 80 aircraft, and Executive Aviation deliveries between 125 and 135. Total company revenues in the $6.0-6.4 billion range, Adjusted EBIT margin between 6.5% and 7.5%, and Adjusted free cash flow of $220 million or higher.
- Boeing Arbitration Process Update
- As previously disclosed, Embraer has been pursuing all appropriate remedies against Boeing for damages suffered by Embraer due to wrongful termination and violation of the Master Transaction Agreement and Contribution Agreement by Boeing, including by means of arbitration proceedings initiated by both sides in connection with the termination of the Master Transaction Agreement and/or the Contribution Agreement by Boeing. Embraer expects such arbitration will be concluded in 3Q24 and it is unable to predict the outcome of the arbitration proceedings