The Successful Investor Hotline – Friday, August 1, 2014

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $3.86 and BBD.B $3.80, reported better-than-expected quarterly results this week. Before one-time items, Bombardier earned $192 million in the quarter ended June 30, 2014, up 21.5% from $158 million a year earlier (all amounts except share prices in U.S. dollars). Earnings per share rose 11.1%, to $0.10 from $0.09, on more shares outstanding. That beat the consensus estimate of $0.09. Overall revenue rose 10.4%, $4.9 billion from $4.4 billion, also exceeding the consensus forecast of $4.7 billion. Revenue at Bombardier’s aircraft division (51% of the total) gained 11.4%. The company delivered 62 planes in the quarter, up from 57 a year earlier. However, it received orders for 48 aircraft (net of cancellations), compared with 82 a year ago. Even so, this division’s backlog rose to $38.1 billion, up 2.1% from $37.3 billion at the end of 2013. The company’s railcar division (49%) saw its revenue rise 9.4%, as it continues to win orders from public transit systems. This business…