{"id":26054,"date":"2011-12-16T11:29:19","date_gmt":"2011-12-16T16:29:19","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/12\/16\/is-embraer-nyse-erj-an-emerging-defense-industry-leader\/"},"modified":"2011-12-16T11:29:19","modified_gmt":"2011-12-16T16:29:19","slug":"is-embraer-nyse-erj-an-emerging-defense-industry-leader","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/12\/16\/is-embraer-nyse-erj-an-emerging-defense-industry-leader\/","title":{"rendered":"Is Embraer (NYSE: ERJ) An Emerging Defense Industry Leader?"},"content":{"rendered":"

Is Embraer (NYSE: ERJ) An Emerging Defense Industry Leader?<\/a><\/p>\n

by Mike Kapsch<\/a>, Investment U<\/em> Research
\nFriday, December 16, 2011<\/p>\n

It’s already the fourth-largest aircraft manufacturer in the world…<\/p>\n

Brazil’s Embraer S.A.<\/strong> (NYSE: ERJ) has produced over 5,000 aircraft that operate in 92 countries on five continents. Annual revenue from commercial and private jet sales alone total nearly $4 billion.<\/p>\n

But the company isn’t satisfied. It’s expanding its defense and security operations, as well. And it may have struck gold in its home country…<\/p>\n

According to SunTrust Robinson Humphrey Senior Analyst Peter Skibitski, three pending defense deals with Brazil’s government could add \u201cseveral billions of dollars” to Embraer’s coffers \u201cover the next four or five years.”<\/p>\n

Considering Embraer’s current annual revenue is $5.28 billion, an additional $1 billion a year is an enormous opportunity. The only question is, is Embraer ready for the challenge?<\/p>\n

Three Reasons Embraer’s Shares Could Fly<\/strong><\/p>\n

Although it has spent the majority of its time producing aircraft for commercial and private use over the last 40 years, Embraer has also spent plenty of time building a solid framework for its defense and security business.<\/p>\n

Only problem is… defense and security make up just 10 percent of Embraer’s total revenue. But that’s set to change…<\/p>\n