Bombardier Inc. (BBD/B) reported quarterly profit that matched analysts’ estimates as sales rose more than expected and the backlog of future contracts reached a record.
Excluding some costs and gains, second-quarter earnings dropped to $158 million, or 9 cents a share, from $167 million, or 9 cents, a year earlier, Montreal-based Bombardier said in a statement today. Results matched the average of 21 estimates compiled by Bloomberg. Revenue rose to $4.43 billion, beating the $4.31 billion average projection, while the backlog climbed to $65.5 billion from $64.9 billion at the end of last year.
Bombardier is working toward the debut flight of its CSeries jetliner within the next few weeks, after three delays since November. Bombardier has said it expects the CSeries to be a key contributor in almost doubling annual revenue in the next decade, garnering $5 billion to $8 billion a year.
“The key catalyst for Bombardier is tied to the CSeries first flight which has slipped from end of June into late August,” Peter Arment, an analyst at Sterne, Agee & Leach Inc., said yesterday in a note to clients. “While the mini-delays are a drag on the overall schedule planned for 2014, the momentum for Bombardier should continue to trade favorably as there are several catalysts tied to first flight.”
Bombardier’s widely traded Class B shares slid 3.3 percent to C$4.96 in Toronto yesterday, cutting their gain this year to 32 percent. Canada’s benchmark Standard & Poor’s/TSX Composite Index has climbed 0.4 percent this year.
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