ERJ - Embraer declines after Q3 revenue misses estimates

Embraer ( NYSE: ERJ ) fell 4.4% by 10:32 a.m. ET after the Brazilian maker of aircraft reported Q3 revenue that was less than Wall Street estimates.

Revenue grew 6.5% from a year earlier to about $1.02 billion in Q3, missing the consensus estimate by $180 million.

Embraer delivered 10 commercial jets and 23 executive jets during the quarter, bringing year-to-date deliveries to 27 commercial jets and 52 executive jets. Despite supply-chain hurdles, deliveries for Q4 are close to the historical average, Embraer said .

Its 3Q consolidated gross margin was 19.1%, compared with 19% a year earlier.

Adjusted EBIT and EBITDA were $50 million and $93 million, respectively, yielding an adjusted EBIT margin of 5.4% and adjusted EBITDA margin of 10%.

Free cash flow in 3Q22 was negative -$109.4 million because of an increase in working capital related to higher deliveries in 4Q22, which will reverse to a positive trend, Embraer said.

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