SAO PAULO Shares of Brazilian Embraer SA (EMBR3.SA) rose the most in almost a month on Friday, after stronger-than-expected deliveries fueled expectations of solid fourth-quarter results.
The world's third-largest commercial planemaker reported delivering 32 commercial jets and 43 executive jets in the final three months of last year, meeting targets for the full year.
Common shares jumped as much as 3 percent, leading gains on the benchmark Bovespa stock index .BVSP. According to Banco BTG Pactual analysts Renato Mimica and Samuel Alves, the mix of deliveries skewed toward larger, more profitable planes came in higher than they had expected.
"Following strong deliveries with a favorable mix, we expect fourth-quarter results to be robust in terms of profitability - the best quarter of the year, also boosted by positive seasonality," they told clients in a note.
Still, Embraer's firm order backlog fell to $19.6 billion at the end of December from $21.4 billion in September.
Itau BBA analysts said in a sales note that a stronger makeup of the backlog was more important than the headline drop, citing the transfer of 24 orders from regional operator Republic Airways Holdings Inc RJETQ.PK to United Airlines (UAL.N).
Embraer also added an order for three next-generation E190 aircraft for an undisclosed customer to this year's backlog.
(Reporting by Brad Haynes and Paula Arend Laier; Editing by Dominic Evans and Bernadette Baum)