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ERJ $36.1

ERJ target price
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Embraer S.A.
Type
Sociedade Anônima
Traded as BM&F Bovespa: EMBR3
NYSE: ERJ
Industry Aerospace, Defense
Founded August 19, 1969; 48 years ago (1969-08-19)
Founder Ozires Silva
Headquarters São José dos Campos, São Paulo, Brazil
Area served
Worldwide
Key people
Paulo Cesar Silva (President & CEO)
Mauro Kern (Vice president)
Jackson Schneider (Vice president)
José Filippo (Vice president)
Products Business, commercial, and military aircraft. Aircraft parts. Mission systems for air and ground operation
Brands EMB, ERJ, Legacy, Lineage,
LR, Phenom
Revenue Increase US$ 5.9 billion (2015)
Operating income
Decrease US$ 543 million (2014)
Net income
Decrease US$ 335 million (2014)
Number of employees
19,116 (September 1, 2014)
Divisions Embraer Defense & Security
Embraer Commercial Aviation
Embraer Executive Jets
Subsidiaries Neiva, OGMA, Atech, Bradar, SAVIS
Website http://www.embraer.com
http://www.embraerds.com
http://www.embraeragricola.com.br
http://www.embraerexecutivejets.com
http://www.embraercommercialaviation.com.br

Embraer S.A. (Portuguese pronunciation: [ẽbɾaˈɛɾ]) is a Brazilian aerospace conglomerate that produces commercial, military, executive and agricultural aircraft and provides aeronautical services. It is headquartered in São José dos Campos, São Paulo State.

Seeking to develop a domestic aircraft industry, the Brazilian government made several investments in this area during the 1940s and '50s. However, it was not until 1969 that Empresa Brasileira de Aeronáutica (Embraer) was created as a government-owned corporation. Its first president, Ozires Silva, was a government appointee, and the company initially produced a turboprop passenger aircraft, the Embraer EMB 110 Bandeirante.

The Brazilian Government contributed to Embraer's early growth by providing production contracts. The company sold solely to the domestic market until 1975.

While military aircraft made up the majority of Embraer's products during the 1970s, including the Embraer AT-26 Xavante and the Embraer EMB 312 Tucano, by 1985, it had debuted a regional airliner, the Embraer EMB 120 Brasilia. Aimed at the export market, this plane was the first of Embraer's highly successful small airliners.

In 1974, the company started to produce Piper Aircraft light planes under license. Piper first put together knock-down kits in their US factory for Embraer to assemble and market in Brazil and Latin America. By 1978, most of the parts and components were being sourced locally. Between 1974 and 2000, nearly 2,500 license-built Pipers were produced by Embraer.

Aerotec was a design and manufacturing company founded in Brazil in 1962 under the auspices of the Brazilian General Command for Aerospace Technology (CTA) in Sao Jose dos Campos.

Beginning in the late 1960s, the firm manufactured a two-seat trainer for the Brazilian Air Force, the Aerotec Uirapuru. A small number were also built for the civil market, and still others were exported to other Latin American countries.

By 1980, Aerotec's main business was producing components for Embraer. However, around this time, the Air Force became interested in an uprated version of the now-venerable Uirapuru. A prototype was built (designated Uirapuru II) but by the time it flew, the Air Force no longer required it. A small number were built for export.

In 1987, the firm was sold to Embraer.

The Aero Tec is also an air circulation fan produced by DL Manufacturing.

Born from a Brazilian government plan and having been state-run from the beginning, Embraer began a privatization process during the government of Itamar Franco. This was a period of privatization for many state-controlled companies in Brazil. Embraer was sold on December 7, 1994, which helped it avoid a looming bankruptcy. The company continued to win government contracts.

The Brazilian government retains interest through possession of golden shares, which allow it veto power.

In 2000, Embraer made simultaneous initial public offerings on the NYSE and BM&F Bovespa stock exchanges. In 2008 its NYSE-traded shares were American Depositary Receipts representing 4 BM&F Bovespa shares and ownership was : Bozano Group 11.10%, Previ 16.40%, Sistel 7.40%, Dassault Aviation 2.1%, EADS 2.1%, Thales 2.1%, Safran 1.1%, Government of Brazil 0.3%, the remainder being publicly traded.

As of December 31, 2014 the shareholders with more than 5% of the Company´s Capital were :

In the mid-1990s, the company pursued a product line more focused on small commercial planes over the military aircraft that had previously made up the majority of its manufacturing. It soon expanded to the production of larger regional airliners, with 70–110 seats, and smaller business jets. Today, the company manufactures for both defense and commerce.

At the 2000 Farnborough Airshow, Embraer launched the Legacy 600, a business jet variant of the ERJ. In 2002, a dedicated business unit was organised as Embraer Executive Jets as the Legacy was introduced. In 2005, the Phenom 100 was then conceptualised as an air taxi like the Eclipse 500, competing with Cessna and Hawker Beechcraft. It was introduced in 2008 and is the basis of the larger Phenom 300. The midsize Legacy 450 and Legacy 500 were jointly developed as clean sheet designs, where the Lineage 1000 is a VIP version of the E190. In 2016, Embraer delivered its 1,000th executive jet and have a market share of 17% by volume, acknowledging it lacks an ultra-long-range large cabin jet.

On April 19, 2007, Embraer announced it was considering the production of a twin-jet military transport, the Embraer KC-390. Work began in May 2009 with funding from the Brazilian Air Force. Correios, the Brazilian postal service, has shown interest in buying this aircraft. Using much of the technology developed for the Embraer 190, the C-390 would carry up to 23 tons of cargo and aims to replace Cold War-era cargo aircraft.

While firm orders for this yet-to-be-produced hauler had not yet been made in the fall of 2010, Argentina had asked for six examples and several other South American nations also expressed interest.

Brazil and Canada engaged in an international, adjudicated trade dispute over government subsidies to domestic plane-makers in the late 1990s and early 2000s. The World Trade Organization determined that both countries had provided illegal subsidies to what were supposed to be privately owned industries. Brazil ran an illegal subsidy program, Proex, benefiting its national aviation industry from at least 1999–2000, and Canada illegally subsidized its indigenous regional airliner industry, comprising Bombardier Aerospace.

The company's headquarters and a production base are in São José dos Campos, São Paulo, Brazil. It also has production bases in the State of São Paulo at Botucatu, Eugênio de Melo (a district of São José dos Campos) and Gavião Peixoto. The company has offices in Beijing, Fort Lauderdale, Florida (US), Paris, Singapore, and Washington, DC (US).

In October 2010, Embraer suggested plans to develop very-long-range business jets, entering a sector currently dominated by Gulfstream, Bombardier, and Dassault. In October 2013, they unveiled the Lineage 1000E.

In May 2011, Embraer announced that it was considering building a larger airliner than the E-jets, with five-abreast seating, but, eventually, choose to develop the second generation of its E-Jet family, as E-jets E2.

In Feb 2014, India's newest airline, Air Costa, announced an order for 50 E-jets E2 aircraft worth $2.94 billion at list price. The order has an option for another 50 planes.

The numbers include military versions of commercial aircraft.

Total delivered-backlog-options as of June 30, 2007: 862-53-131 145 Family, 256-399-719 170/190 Family

Q reports

Period Date Adjusted Actuals EPS GAAP EPS
Q3 2022 2022-10-27 Future report Set alerts
Q2 2022 2022-08-04 0.20 0.20
Q1 2022 2022-04-28 -0.44 -0.44
Q4 2021 2022-03-09 Future report Set alerts
Q3 2021 2021-11-05 -0.18 -0.18
Q2 2021 2021-08-13 0.00 0.00
Q1 2021 2021-04-29 0.00 0.00
Q4 2020 2021-03-15 0.00 0.00
Q3 2020 2020-11-18 -0.81 0.00
Q2 2020 2020-08-05 -1.08 -1.71

Ratings

2016-07-12 Reiterated Rating Drexel Hamilton Hold
2016-06-16 Upgrade Bank of America Neutral to Buy
2016-06-16 Upgrade Bank of America Corp. Neutral to Buy
2016-06-13 Lower Price Target Deutsche Bank Buy $33.00 to $30.00
2016-06-13 Lower Price Target Deutsche Bank AG Buy $33.00 to $30.00
2016-05-02 Lower Price Target Goldman Sachs Neutral $27.00 to $26.00
2016-05-02 Lower Price Target RBC Capital Sector Perform $30.00 to $28.00
2016-05-02 Lower Price Target Goldman Sachs Group Inc. Neutral $27.00 to $26.00
2016-05-02 Lower Price Target Royal Bank Of Canada Sector Perform $30.00 to $28.00
2016-03-13 Lower Price Target Citigroup Inc. Buy $37.00 to $31.00
2016-03-10 Downgrade Bank of America Buy to Neutral
2016-03-07 Lower Price Target Deutsche Bank Buy $35.00 to $33.00
2016-03-05 Reiterated Rating RBC Capital Hold
2016-03-04 Downgrade Santander Buy to Hold
2016-03-04 Downgrade Cowen and Company Outperform to Market Perform $39.00 to $29.00
2016-03-04 Lower Price Target RBC Capital Sector Perform $33.00 to $30.00
2016-03-03 Downgrade Scotiabank Outperform to Sector Perform
2016-02-26 Boost Price Target Goldman Sachs $27.00 to $28.00
2015-08-02 Reiterated Rating RBC Capital Hold
2015-07-31 Reiterated Rating Deutsche Bank Buy $40.00 to $35.00
2015-07-31 Lower Price Target Scotiabank $38.00 to $34.00
2015-07-31 Lower Price Target RBC Capital Sector Perform $36.00 to $33.00
2015-07-16 Reiterated Rating RBC Capital Sector Perform $36.00
2015-06-18 Upgrade Cowen and Company Market Perform to Outperform $31.61 to $42.00
2015-05-05 Downgrade HSBC Reduce
2015-03-30 Reiterated Rating Deutsche Bank Buy $40.00
2015-03-18 Reiterated Rating Deutsche Bank Buy $40.00
2015-03-09 Lower Price Target Deutsche Bank Buy $42.00 to $40.00
2015-03-06 Reiterated Rating Imperial Capital Positive
2015-03-05 Downgrade Drexel Hamilton Buy to Hold
2015-03-03 Lower Price Target RBC Capital Sector Perform $40.00 to $39.00
2015-01-16 Lower Price Target Deutsche Bank Buy $44.00 to $42.00
2015-01-16 Upgrade Itau BBA Securities Outperform
2015-01-15 Upgrade Credit Suisse Underperform to Neutral $29.00 to $38.00
2015-01-15 Upgrade Credit Suisse Group AG Underperform to Neutral $29.00 to $38.00
2015-01-05 Lower Price Target Deutsche Bank Buy $46.00 to $44.00
2014-11-03 Downgrade RBC Capital Outperform to Sector Perform $44.00 to $40.00
2014-09-05 Upgrade Santander Underperform to Hold
2014-06-23 Boost Price Target Deutsche Bank Buy $40.00 to $44.00
2014-06-03 Reiterated Rating Morgan Stanley Overweight $41.10
2014-05-01 Reiterated Rating JPMorgan Chase & Co. Neutral $38.00
2014-03-03 Boost Price Target RBC Capital Outperform $40.00 to $44.00
2014-03-03 Downgrade HSBC Overweight to Neutral
2014-02-27 Boost Price Target JPMorgan Chase & Co. $5.00 to $36.00
2014-01-27 Initiated Coverage Credit Suisse Underperform
2013-11-12 Upgrade Citigroup Inc. Sell to Neutral
2013-11-01 Upgrade Scotiabank Sector Perform to Outperform $39.50 to $38.00
2013-10-30 Reiterated Rating RBC Capital Outperform $42.00
2012-09-28 Initiated BB&T Capital Mkts Hold
2012-08-02 Initiated UBS Buy $32 to $32
2012-04-03 Initiated William Blair Mkt Perform
2010-01-06 Downgrade JP Morgan Neutral to Underweight $18
2009-08-03 Reiterated Credit Suisse Neutral $16 to $19
2009-07-31 Upgrade Credit Suisse Underperform to Neutral $16 to $19
2008-07-01 Reiterated Credit Suisse Neutral $55 to $38
2008-01-10 Reiterated UBS Neutral $46 to $49
2007-10-08 Reiterated Calyon Securities Add $48 to $53
2016-07-12 Reiterated Rating Drexel Hamilton Hold
2016-06-16 Upgrade Bank of America Neutral to Buy
2016-06-16 Upgrade Bank of America Corp. Neutral to Buy
2016-06-13 Lower Price Target Deutsche Bank Buy $33.00 to $30.00
2016-06-13 Lower Price Target Deutsche Bank AG Buy $33.00 to $30.00

There is presents forecasts of rating agencies and recommendations for investors about this ticker

Major Shareholders

Name Relationship Total Shares Holding stocks