Bombardier’s (BBD.B)’s stock fell 8% immediately after the Canadian jet maker reported mixed financial results for the year’s second quarter.
The Montreal-based company announced a second-quarter profit of $10 million compared with a loss of $109 million a year earlier.
However, Bombardier’s free cash flow missed analysts’ estimates and the company provided lacklustre forward guidance, sending its stock lower.
Specifically, Bombardier reported that it burned through $222 million of cash in Q2. That compared with positive free cash flow of $341 million in the same period a year ago.
Analysts polled by Refinitiv had forecast Q2 negative free cash flow of $171 million.
Bombardier reported $1.7 billion in Q2 revenues, an 8% year-over-year increase, driven largely by aftermarket revenues.
Bombardier's aftermarket revenue, which comes from servicing airplanes, grew 19% on an annual basis in the April through June quarter, helping to boost the company’s profitability.
There are indications that demand for the private jets that Bombardier manufactures is weakening.
The company said its order backlog at the end of June was up only 0.7% from this year’s first quarter at $14.9 billion.
Despite the 8% drop, Bombardier’s stock is still up nearly 140% over the last 12 months and currently trading at $61.79 per share.
Related Stories
