Shares of Embraer SA (ERJ) took a nosedive in pre-market trading on Tuesday, plummeting 5.82% following the release of the company's disappointing first-quarter 2025 financial results. The Brazilian aerospace manufacturer reported wider-than-expected losses and slightly missed revenue estimates, causing investors to react negatively.
Embraer announced a Q1 adjusted loss of $0.40 per American depositary share (ADS), significantly wider than the $0.07 loss per ADS reported in the same period last year. This result fell far short of analysts' expectations, who had forecast a small profit of $0.02 per share. The company's revenue for the quarter came in at $1.10 billion, representing a 23% increase year-over-year but still slightly below the consensus estimate of $1.11 billion.
Despite the disappointing quarterly performance, Embraer maintained its full-year 2025 revenue guidance of $7.00 billion to $7.50 billion. However, the widened losses and revenue miss have raised concerns among investors about the company's near-term profitability and operational efficiency. The pre-market stock plunge reflects these worries and suggests that market participants are reassessing their expectations for Embraer's performance in the coming quarters.
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