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Highlights
- Stocks of Bombardier Inc (TSX: BBD.B), a business aircraft manufacturer, have been creating a buzz in the markets since it reported its fourth-quarter and full-year financial results for 2021 earlier this month.
- While the C$ 3-billion market cap firm posted positive performance for 2021, its stocks plummeted by over four per cent on Friday, February 18.
- Bombardier stock skyrocketed by over 184 per cent in the past 12 months.
Stocks of Bombardier Inc (TSX: BBD.B), a business aircraft manufacturer, have been creating a buzz in the markets since it reported its fourth-quarter and full-year results for 2021 earlier this month.
The C$ 3-billion market cap firm saw its stocks plummet by over four per cent on Friday, February 18, with about 7.6 million shares exchanging hands.
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Let us discuss what the aircraft maker said in its latest earnings report.
Bombardier (TSX: BBD.B) financial results in Q4 FY2021
The business jet maker said that it had six fewer deliveries, comprising a total of 38, in the fourth quarter of FY2021. This was down from a total of 44 in the previous-year quarter.
Consequently, its Q4 business jet revenue noted a decline of US$ 0.5 billion in 2021 to US$ 1.77 billion.
The jet company, however, increased its free cash flow (FCF) by 48 million year-over-year (YoY) to US$ 314 million in Q4 FY2021.
Bombardier said that its 2021 business jet revenue was seven per cent up at US$ 6 billion in comparison to that of fiscal year 2020.
Bombardier stock performance
Bombardier stock skyrocketed by over 184 per cent in the past 12 months.
The industrial stock closed at US$ 1.62 apiece on Friday, February 18, nearly 206 per cent up from a 52-week low of US$ 0.53 (February 23, 2021).
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Bottomline
The industrial company has said that it is “optimistic” for the fiscal year 2022 as it expects its 2022 revenue to surge greater than US$ 6.5 billion, underpinned by overall business growth. It expects an improvement of 29 per cent in its 2022 adjusted EBITDA with an anticipation that it will exceed US$ 825 million.
However, investors should keep in mind the economic factors, COVID effects and other fundamental changes happening in the market to minimize losses while investing in any such stock.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
