BDRBF - Bombardier shares flying high on smaller Q2 loss stronger free cash flow

Bombardier ( OTCQX:BDRAF ) ( OTCQX:BDRBF ) jumped as much as 11% on Thursday after reporting a smaller than expected Q2 loss and a 5% rise in revenues to C$1.56B, helped by steady demand and lower interest expenses.

Q2 adjusted loss narrowed to C$0.48/share from a loss of C$1.49/share in the year-ago quarter, with free cash flow from continuing operations nearly quadrupling to C$341M from C$91M a year earlier; analyst consensus had forecast negative C$78M free cash flow.

Bombardier ( OTCQX:BDRAF ) ( OTCQX:BDRBF ) raised its full-year free cash flow guidance to greater than C$515 million from its previous forecast for greater than C$50M, due in part to a rising order book and stronger working capital performance.

The company reaffirmed guidance on aircraft deliveries to more than 120 units, and revenues to exceed C$6.5B.

Bombardier's ( OTCQX:BDRAF ) ( OTCQX:BDRBF ) order backlog rose by 37% Y/Y to $14.7B, with a unit book-to-bill of 1.8 for Q2, indicating continued high demand and strong order intake, the company said.

"While results were above virtually across the board, it was the [free cash flow] beat that was particularly impressive, and the resulting increase in FCF guide for the year further punctuated that impressive result," RBC Capital's Walter Spracklin said, according to Bloomberg.

Bombardier ( OTCQX:BDRAF ) ( OTCQX:BDRBF ) is "a business jet buy" after completely refocusing its business, Dhierin Bechai writes in a bullish analysis published on Seeking Alpha .

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