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Summary
- Bombardier stocks climbed on to the trending charts after posting a jump of over eight per cent on Thursday, March 4.
- It currently holds an average trading volume of over seven million for the past 10 days and that of over nine million for the last one month.
- From its business aircraft activities, the company generated a revenue of US$ 5.6 billion, up three per cent year-over-year (YoY), in 2020.
- Earlier in February, Bombardier started the procedure to repay the outstanding balance of US$ 750 million drawn on its senior secured term loan facility in August last year.
Canadian business jet maker Bombardier Inc (TSX:BBD.B) had a long and hard year in pandemic-depressed 2020. From losing its assets, snipping its operations, downsizing workforce, to watching its stocks deflate to record lows, Bombardier saw it all. But having put in extended cost control efforts and bagged new contracts, could the industrial firm now be getting back up on their feet? Let’s find out.
How Are Bombardier (TSX:BBD.B) Stocks Doing?
Most recently, Bombardier stock climbed on to the trending charts after posting a jump of over eight per cent on Thursday, March 4. It currently holds an average trading volume of over seven million for the past 10 days and that of over nine million for the last one month.
©Kalkine Group 2021
Bombardier share rose about 34 per cent this year to arrive at its current price of C$ 0.65. While this is nowhere close its pre-COVID levels in February last year (highest being C$ 1.67 on 13 February 2020), its current stock price is a notable increase from the pandemic lows.
For instance, Bombardier stock swooped to a record low of C$ 0.28 on October 31, then again on November 13 last year. From this level, the scrip has shot up by over 132 per cent in the roughly last four months.
Bombardier Inc Latest Financials
Bombardier, formerly a manufacturer of commercial jets and public transport vehicles, has snipped its operations to just business aircraft production following a series of deals and sales. From its business aircraft activities, the company generated a revenue of US$ 5.6 billion, up three per cent year-over-year (YoY), in 2020.
While the Canadian firm incurred a net loss of US$ 568 million for 2020, it posted a 65 per cent YoY improvement from its net loss of US$ 1,607 million in 2019.
Bombardier’s Current Scenario
In its market outlook and financial targets for year 2025, Bombardier stated that it expects to secure a revenue of approximately US$ 7.5 billion and a free cash flow of about US$ 500 million.
The Montreal-based company faced a cybersecurity breach in February. Initial investigation, Bombardier said, revealed an “unauthorized party” that had exploited a third-party file-transfer application to access and extract data.
Earlier in February, Bombardier also started the procedure to repay the outstanding balance of US$ 750 million drawn on its senior secured term loan facility in August last year.
