Canadian business-jet maker Bombardier is set to report its third-quarter earnings Thursday morning. Here's what you need to know.
REVENUE: Revenue is expected to climb to $2.38 billion from $2.31 billion a year earlier, according to analysts polled on FactSet.
EARNINGS PER SHARE: Analysts forecast earnings per share to rise to $1.73; last year, earnings from continuing operations came to 77 cents a share.
ADJUSTED EPS: Adjusted earnings are pegged at $1.61 a share.
In the quarter, the stock fell 3.6% and recently traded at 337.20 Canadian dollars.
WHAT TO WATCH
--Investors will keep a keen eye on Bombardier's backlog of business-jet orders, National Bank of Canada's Cameron Doerksen says. He notes that at the end of the last quarter, Bombardier's backlog stood at $21.8 billion, and the momentum should continue into the third quarter. "With new jet order activity still robust, we expect a positive book-to-bill and backlog build again in 3Q," Doerksen says.
--Bombardier has been building up other parts of the business, such as aftermarket services. Doerksen expects continued momentum here too. "We continue to expect solid aftermarket growth (services revenue up 14% y/y in 2Q) which will support margin expansion and lower cyclicality over time," he says.
--The company's defense segment is another growing side of the business that investors will track. Doerksen sees demand continuing to grow for this side of the business. "The Defense segment backdrop remains highly positive," he says, noting commitments for Bombardier business jet platforms, most notably the Saab GlobalEye program. "[Bombardier has] a clear line of sight to exceeding the company's targeted $1.5 billion in annual revenue," the analyst adds.
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