ERJ - Why Embraer Stock Is Down Today
2023-05-04 14:10:32 ET
Embraer (NYSE: ERJ) lost more money in the first quarter of 2023 than it did in the same three months of 2023. Investors reacted poorly to the results, sending shares of the aircraft manufacturer down as much as 10% on Thursday.
The first quarter is typically the slowest for Embraer, and 2023 proved to be no exception. The company posted an adjusted net loss of $88.9 million in the quarter, down from a loss of $75.3 million a year ago. Revenue came in at $717 million, well short of the $854 million consensus estimate.
Free cash flow was also negative. Embraer used nearly $400 million in cash in the quarter, with much of the negative outflow investments ahead of an expected boost in deliveries in the second half of 2023. The company delivered just 15 jets in the first three months of 2023: seven commercial aircraft and eight business jets.
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Why Embraer Stock Is Down Today