Embraer SA (EMBR3) fell to a nine-month low after the Brazilian planemaker posted quarterly earnings that trailed analysts’ estimates as jet deliveries declined.
The shares tumbled 4.8 percent to 15.70 reais at 12:44 p.m. in Sao Paulo. A close at that level would be the lowest since Jan. 23. It was the worst performance on the MSCI Brazil/Industrials index, which dropped 1.4 percent.
“The low number of deliveries of commercial aircraft is still reflecting last year’s poor backlog impacted by worries about global macroeconomic conditions,” Banco Bradesco SA (BBDC4) analysts led by Edigimar Maximiliano Jr. wrote in a research note to clients today.
Embraer’s adjusted net income fell 57 percent to 81.2 million reais ($36.7 million) in the third quarter from a year earlier, according to data compiled by Bloomberg after the company released results today. That compares with an average estimate of 171.2 million reais among 11 analysts surveyed by Bloomberg. The company delivered 19 commercial jets, compared with 27 in the prior period, according to the filing.
The Sao Jose dos Campos, Brazil-based planemaker has slumped 13 percent in the past week as JetBlue Airways Corp. (JBLU) delayed the delivery of 24 Embraer jets to trim expenses. Embraer’s backlog reached $17.8 billion in the third quarter, the highest level since 2009, according to the filing.
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