Bombardier Set to Report

First quarter results ready to land on Thursday. Will the stock take off?

| More on:
The Motley Fool

Bombardier (TSX:BBD.B) is scheduled to release its quarterly results on Thursday, May 9th.  Given the many moving parts embedded within Bombardier’s business, quarterly numbers are a tough thing to predict.  This results in a wide range of estimates and can result in large swings in the company’s stock price on earnings days.

According to Capital IQ, analysts currently expect Bombardier to have earned $0.08 per share in the first quarter on revenues of $4.2 billion.  Although EPS of $0.08 looks good compared to last quarter’s EPS of $0.00, 12 months ago analysts were estimating Bombardier would earn $0.13 in this quarter.  Expectations have clearly been reigned in.

Items to watch

Aside from the bottom line, two other items to keep an eye on are the company’s margins and any further updates on the soon-to-be flying C-Series aircraft.

Tabled below are the EBIT margins from BBD’s past 4 quarters.  The market wants to see an improvement here in Thursday’s release.

Q1’12

Q2’12

Q3’12

Q4’12

EBIT Margin

4.7%

5.1%

4.7%

3.4%

Source:  Capital IQ

The market also wants to see that the company remains on target to begin flying its new C-Series aircraft by the end of June.  The company’s short sellers would love to see further delays announced for this project as the stock price would take a hit.

Bombardier has the 3rd largest short position on the TSX.  We have created a special FREE report that identifies 3 U.S. businesses that no short seller in their right mind should ever think of touching.  The reason – these are three of the most dominant businesses in the world!  Simply click here to receive “3 U.S. Stocks Every Canadian Should Own” – FREE!

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler does not own shares in any of the companies mentioned in this report at this time.  The Motley Fool has no positions in the stocks mentioned above.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

Canadian Dollars bills
Dividend Stocks

Got $25,000? This Dividend Stock Could Turn it Into $225,000

If you want to get in on one cheap stock that's due to rise, then this dividend stock could offer…

Read more »

Offshore wind turbine farm at sunset
Energy Stocks

If I Could Only Buy and Hold a Single Renewable Energy Stock, This Would Be it

Now could be an opportunistic time for a long-term investor to invest in renewable energy stocks.

Read more »

open vault at bank
Bank Stocks

The Smartest Banking Stock to Buy With $1,600 Right Now

Toronto-Dominion Bank (TSX:TD) is positioning itself as a compelling long-term dividend investment.

Read more »

Hourglass projecting a dollar sign as shadow
Investing

Where Will Dollarama Stock Be in 5 Years?

Dollarama stock has crushed the broader markets since its IPO in late 2009. Is the TSX stock still a good…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Tuesday, May 20

After rallying for six straight weeks, the TSX Composite Index is currently trading at its historic highs.

Read more »

sale discount best price
Investing

These Stocks Simply Look Too Cheap to Ignore Any Longer

CN Rail (TSX:CNR) and another Canadian value stock are still worth picking up as the TSX soars.

Read more »

data analyze research
Dividend Stocks

Buy the Dip on the Return of These Recession Stocks?

These companies keep humming along, no matter what the economy is doing.

Read more »

data analyze research
Bank Stocks

This Canadian Financial Stock Down 16% Pays an Iron-Clad Dividend

This bank stock took a big hit last year but is rallying in 2025.

Read more »