Bombardier 4Q Net Down 27%; Margins, Outlook Dissapoint |
| Wall Street Journal - Mar 1, 2012 |
Shares of Montreal train and plane maker Bombardier Inc. (BBD.B.T) fell almost 8% Thursday after it reported a 27% drop in fourth-quarter earnings, and transportation margins and aerospace guidance fell short of what some analysts expected.
In Toronto, Bombardier's shares were recently down 7.6% or 36 Canadian cents, at C$4.39. The stock had been up 17% year-to-date as of Wednesday's close.
Despite a slight fourth-quarter earnings beat, some analysts were disappointed with fourth-quarter transportation margins of 7.2% and aerospace margin guidance for 2012 of 5%, which UBS called "light relative to our 8.3% estimate."
Separately, JP Morgan said "our major concerns revolve around cash flow dynamics, the longer-term outlook for (aerospace) margins, and transportation's ability to move past troubled programs."
The transportation-equipment giant earned $214 million or 12 cents a share in the fourth quarter, down from $295 million or 16 cents a year earlier. The latest results, however, were a penny better than the Thomson Reuters mean estimate.
Read Full Article from Wall Street Journal
- Posted: 2012-03-01 11:45:44
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