Planemaker Embraer shares jump after quarterly earnings beat

Brazilian planemaker Embraer's Q2 net income jumped by almost 40%, it said on Thursday, beating market expectations and sending its shares sharply higher after increased deliveries of commercial aircraft. The world's third-largest planemaker behind Airbus and Boeing posted adjusted net profit of $80.4m in the three months to June 30, exceeding the $47.66m forecast by analysts polled by LSEG. Embraer had previously reported deliveries of 19 commercial jets in the period, up 12% year on year, pushing up revenue and helping to offset a 10% drop in business jet deliveries. Sao Paulo-traded shares of the planemaker rose as much as 9.5% after the results, making it one of the top performers on benchmark stock index Bovespa and extending its year-to-date gain to more than 85%. The company reaffirmed its outlook for 2024, which includes the delivery of between 72 and commercial aircraft, and 125-135 executive jets, bringing in revenue of between $6b and $6.4bi. "We are fully committed to reaching our full-year guidance, despite all the ongoing supply-chain constraints we continue to deal with," CFO Antonio Carlos Garcia told a call with analysts. Revenue for the quarter was $1.49b, up 15.6% from a year earlier and slightly more than the $1.45b expected by analysts. Its commercial aviation and defense arms stood out with 17% and 130% rises, respectively. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 27.9% to $190.4m, beating the $135.45m expected by analysts, while the EBITDA margin grew 120 basis points to 12.7%.<br/>