Embraer Expects Headwinds for 2018

Aircraft manufacturers have enjoyed huge demand lately, as a prosperous airline industry has been able to direct investment into improving aircraft fleets and finding more efficient ways to operate. That has been a boon for Brazilian manufacturer Embraer (NYSE: ERJ), which has positioned itself to capture business from its airline customers. Concerns about its home market of Brazil have arguably made Embraer an even better value from a shareholder perspective, especially as investors look forward to the ramp-up of new aircraft in the E2 product line.

Coming into Friday's third-quarter financial report, Embraer investors were ready for the volatility that can affect the company's results dramatically from quarter to quarter. Yet although Embraer's immediate results were solid, the aircraft maker warned that 2018 could present some challenges that not everyone seemed to have taken into account. Let's take a closer look at Embraer to see how it did and what's ahead for the company.

Image source: Embraer.

Source: Fool.com