Embraer delivered 90 commercial aircraft last year, the manufacturer confirmed March 14, in line with what the company advised in January, but its financial results for 2018 and expectations over closing two Boeing mergers left analysts and investors underwhelmed.

“We view these results as modestly negative,” Credit Suisse analysts said. “While fourth-quarter 2018 was largely in line with the company’s pre-announced expectations from January, the [results] nevertheless came in light of Wall Street estimates.”

The Brazilian company also said it expected the joint venture proposals with Boeing to close “at the end of 2019,” which analysts interpreted as a slip from the “by the end of 2019” or “late 2019” forecasts offered earlier. Managers did not provide much more information but reiterated that the deals still require approval from antitrust authorities and satisfaction of other customary conditions. Embraer shareholders approved the moves late last month.

The company reported 2018 revenue of $5.07 billion, which it said was close to the $5.1 billion it forecast in January, but apparently stock watchers were hoping for the company to beat those projections. Embraer reported almost $5.9 billion in revenue for 2017. Specifically, fourth-quarter 2018 revenue was about 1.6% off what Wall Street had hoped, according to Credit Suisse.

For shareholders, the net income loss for 2018 was $178.2 million, compared to a $264 million gain in 2017. Loss per share in 2018 was $0.97, compared to a $1.44 gain last year.

Traders knocked off more than 2% of Embraer’s stock price after the results and a teleconference. Analysts in part blamed an uninspiring performance on what will remain of Embraer after it sells 80% of its commercial aircraft business to Boeing.

Looking to 2019, Embraer reaffirmed the January guidance, including delivery of 85-95 commercial aircraft and 90-100 business jets. Sales still are expected to come in $5.3 billion to $5.7 billion.

Michael Bruno, michael.bruno@aviationweek.com