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Highlights
- Bombardier (TSX: BBD.B) announced increasing its maintenance and repair capacity at Le Bourget Airport near Paris.
- On Monday, the mid-cap company introduced the Global 8000, anticipated to enter service in 2025
- B stock has zoomed by about 25 per cent in the last 12 months
Bombardier Inc (TSX: BBD.B) has been trending on the stock market on Tuesday, May 24, after the company announced increasing its maintenance and repair capacity at Le Bourget Airport near Paris. Bombardier aims to increase its aftermarket services to customers in Europe by expanding its Line Maintenance Station (LMS).
On Monday, the mid-cap industrial company introduced the Global 8000. It is a four-zone cabin business aircraft with a speed of Mach 0.94 and a range of 8,000 nautical miles. This new aircraft features the company's Pur Air and filtration technology to ensure clean cabin air and fresh air replacement.
However, Global 8000 is still under development and is anticipated to enter service in 2025. The company added that the current Global 7500 jets will be equipped with enhanced features of Global 8000.
With its expanding service network and introduction of the Global 8000 jet, let us have a look at Bombardier Inc's latest financial results and stock performance.
Bombardier Inc’s (TSX: BBD.B) Q1 FY2022 results
Bombardier Inc delivered a total of 21 aircraft and posted a year-over-year (YoY) reduction in revenue of seven per cent to US$ 1.24 billion in Q1 FY2022. The aircraft maker said that its aftermarket revenues improved by 34 per cent YoY in the latest quarter.
Bombardier's backlog jumped to US$ 13.5 billion at the end of Q1 FY2022, a quarter-over-quarter (QoQ) jump of 11 per cent supported by 'strong' demand. The C$ 2.7 billion market cap company recorded cash and cash equivalents (CCE) of 1.4 billion as of March 31.
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Despite a net loss of US$ 287 million in Q1 2022, the company continued to pursue its deleveraging strategies by partially redeeming outstanding Senior Notes (total worth US$ 400 million) during this quarter.
Bombardier Inc’s stock performance
Having closed at C$ 1.14 on Friday, May 20, stocks of Bombardier were trading at C$ 1.15 per share at 11:16 AM EST on Tuesday, May 24. The BBD.B stock has zoomed by about 25 per cent in the last 12 months.
As per EODHD/Others data, Bombardier Inc held a Relative Strength Index (RSI) value of nearly 41.66 on May 24. Generally, an RSI value of less than 30 is taken to indicate that a stock may be oversold in the market, while an RSI value of more than 70 suggests an overbought market situation.
Bottom line
Bombardier Inc has a return on equity (ROE) of over nine per cent, reflecting its financial performance by comparing its net earnings to total shareholders' equity. Given that it is coming up with a new product, it makes for an interesting watch.
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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.
