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Bombardier declined despite third-quarter revenue that beat analysts’ estimates on Thursday, helped by strong demand for business jet parts and repairs.
Business jet makers are increasing their order backlogs as they benefit from a wave of interest from wealthy travelers that has continued since the COVID-19 pandemic.
Despite an 18-day strike in July at one of its Canadian facilities, Bombardier delivered 30 jets during the third quarter ending September, compared with 31 aircraft a year earlier.
The Challenger jet maker reported cash burn, a metric closely watched by investors, of US$127-million during the quarter, compared with a positive cash flow of US$80-million in the same period last year.
Bombardier maintained its full year forecast for jet deliveries of 150 to 155 aircraft.
Revenue from the company’s services business rose 28 per cent in the third quarter to US$528-million.
Montreal-based Bombardier’s total revenue for the quarter was US$2.07-billion, compared with the average analyst estimate of US$1.79-billion, according to data compiled by LSEG.
On an adjusted basis, the company earned 74 US cents per share, compared with estimates of 73 US cents.
In a research note released before the bell, Citi analyst Stephen Trent said: “Bombardier’s adj 3Q’24 EPS came in at $0.74, vs Bloomberg consensus of $0.75. Overall, the results look marginally positive, with book to bill stable at 1 times, the firm order backlog softening ever so slightly sequentially, but stable year-over-year at $14.7-billlion, and mild FCF usage of
negative $127-million. Assuming risk-neutral market conditions, these results could lead Buy-rated Bombardier’s shares to trade range-bound on Thursday morning.”