Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Embraer Retreats Third Day on Speculation Revenue Declined

Don't Miss Out —
Follow us on:

July 25 (Bloomberg) -- Embraer SA, the world’s largest regional-jet maker, fell for a third day on concern its second-quarter earnings report will show revenue declined.

The shares dropped 0.5 percent to 20.78 reais at 12:52 p.m. in Sao Paulo, extending the decline since July 22 to 4.2 percent. The Ibovespa gained 0.5 percent today and has gained 0.1 percent in the past three days. The company will post its second-quarter results after the market closes today.

“We expect Embraer to report significantly lower revenues,” Bradesco BBI analysts including Edigimar Maximiliano Jr. wrote in a research note dated July 18. The company delivered 51 aircraft during the second quarter, down from 55 deliveries last year, according to the report.

The Sao Jose dos Campos, Brazil-based company, which trailed earnings forecasts in the past two quarters, is projected to post revenue of 3.1 billion reais ($1.4 billion) for the period ended in June, compared with 3.4 billion reais a year ago, according to the average estimate of 12 analysts surveyed by Bloomberg. Adjusted net income is expected to rise to 182.7 million reais from from 114.8 million reais.

Today’s decline pared Embraer’s advance in 2013 to 44 percent, the best performance on the Ibovespa. The stock has rallied amid a growing order pipeline and a depreciating Brazilian currency.

Embraer received jet orders from companies including Japan Airlines Co., SkyWest Inc., Republic Airways Holdings Inc. and the U.S. Air Force this year, and expanded a pact that lets Boeing Co. sell military aircraft globally. The real has weakened 9.2 percent in 2013, driving up the local currency proceeds of the company’s dollar revenue. The planemaker received about 86 percent of its revenue last year from outside Brazil, according to data compiled by Bloomberg.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.