bombardier

BOMBARDIER INC. (Toronto symbols BBD.A $3.72 and BBD.B $3.67; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $6.2 billion; Price-to-sales ratio: 0.3; Dividend yield: 2.7%; TSINetwork Rating: Average; www.bombardier.com)had to ground its new CSeries passenger jet in May 2014 due to an engine malfunction. The engine’s manufacturer fixed the fault, and Bombardier has resumed
test flights.

The company has firm orders for 203 CSeries planes, plus options for an additional 310. If buyers exercise all of these options, the entire order of 513 aircraft would be worth roughly $34 billion U.S. That’s equal to 1.9 times Bombardier’s 2013 revenue.

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Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor. WESTJET AIRLINES (Toronto symbol WJA; www.westjet.com) serves 90 destinations in North America, Central America, the Caribbean and Europe. Its fleet of 107 modern Boeing 737s are 30% more fuel efficient than older jets. In June 2013, the company launched WestJet Encore, its Canadian regional airline. This business now operates 13 Bombardier Q400 NextGen turboprop planes, which seat 78 passengers....

FIRSTSERVICE CORP. $59.35 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 36.6 million; Market cap: $2.1 billion; Dividend yield: 0.7%) serves the following areas of the real estate market: commercial real estate, residential property management and property improvement. The company has more than 24,000 employees worldwide. In the quarter ended June 30, 2014, FirstService’s revenue rose 14.7%, to $660.7 million from $576.1 million a year earlier (all figures except share prices in U.S. dollars). Excluding one-time items, earnings per share were $0.74, up 29.8% from $0.57. Revenue rose at all three of FirstService’s divisions: Colliers International (commercial real estate), up 22%; FirstService Residential (residential property management), up 9%; and FirstService Brands (property services), up 12%. FirstService Brands operates Paul Davis Restoration, California Closets and CertaPro Painters....

BOMBARDIER INC. (Toronto symbols BBD.A $3.72 and BBD.B $3.67; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $6.2 billion; Price-to-sales ratio: 0.3; Dividend yield: 2.7%; TSINetwork Rating: Average; www.bombardier.com)had to ground its new CSeries passenger jet in May 2014 due to an engine malfunction. The engine’s manufacturer fixed the fault, and Bombardier has resumed test flights. The company has firm orders for 203 CSeries planes, plus options for an additional 310. If buyers exercise all of these options, the entire order of 513 aircraft would be worth roughly $34 billion U.S. That’s equal to 1.9 times Bombardier’s 2013 revenue....

BOMBARDIER INC., Toronto symbols BBD.A $3.70 and BBD.B $3.63, has fallen 5% in the past two weeks on concern about further setbacks for its new CSeries passenger jet. In late May 2014, an engine problem forced the company to suspend testing. The engine’s manufacturer has since investigated and feels it has fixed the fault. Bombardier is now testing the modified engines at its Montreal plant and plans to resume test flights by the end of this month. These problems have prompted Sweden’s Braathens Aviation to withdraw as the CSeries’ first customer. Braathens has not cancelled its order for 10 planes, but it will postpone delivery from the second half of 2015 to 2016 or later....

WESTJET AIRLINES $33.05 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 127.8 million; Market cap: $4.2 billion; Dividend yield: 1.5%) serves 90 destinations in North America, Central America, the Caribbean and Europe. Its fleet of 107 modern Boeing 737s are 30% more fuel efficient than older jets.

In June 2013, the company launched WestJet Encore, its Canadian regional airline. This business now operates 13 Bombardier Q400 NextGen turboprop planes, which seat 78 passengers.

In the three months ended June 30, 2014, WestJet’s earnings rose 15.9%, to a second-quarter record of $51.8 million from $44.7 million a year earlier. Earnings per share gained 17.6%, to $0.40 from $0.34, on fewer shares outstanding. This was WestJet’s 37th consecutive quarter of profitability.

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BOMBARDIER INC., Toronto symbols BBD.A $3.86 and BBD.B $3.80, reported better-than-expected quarterly results this week. Before one-time items, Bombardier earned $192 million in the quarter ended June 30, 2014, up 21.5% from $158 million a year earlier (all amounts except share prices in U.S. dollars). Earnings per share rose 11.1%, to $0.10 from $0.09, on more shares outstanding. That beat the consensus estimate of $0.09. Overall revenue rose 10.4%, $4.9 billion from $4.4 billion, also exceeding the consensus forecast of $4.7 billion....

BOMBARDIER INC. (Toronto symbols BBD.A $3.81 and BBD.B $3.75; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $6.4 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.5%; TSINetwork Rating: Average; www.bombardier.com) has received new orders for up to 48 of its CSeries passenger jets.

These are the first orders since a problem with the plane’s engine forced Bombardier to suspend test flights in May 2014. The engine’s maker, Pratt & Whitney, has addressed this issue, and Bombardier expects to begin delivering these planes in 2015.

Including these new deals, the company now has firm orders for 205 CSeries planes. If buyers exercise all their options to buy additional aircraft, Bombardier’s total orders would rise to 495 planes and be worth about $35 billion U.S.

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BOMBARDIER INC. (Toronto symbols BBD.A $3.81 and BBD.B $3.75; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $6.4 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.5%; TSINetwork Rating: Average; www.bombardier.com) has received new orders for up to 48 of its CSeries passenger jets. These are the first orders since a problem with the plane’s engine forced Bombardier to suspend test flights in May 2014. The engine’s maker, Pratt & Whitney, has addressed this issue, and Bombardier expects to begin delivering these planes in 2015. Including these new deals, the company now has firm orders for 205 CSeries planes. If buyers exercise all their options to buy additional aircraft, Bombardier’s total orders would rise to 495 planes and be worth about $35 billion U.S....

Bombardier recently had to suspend test flights of its CSeries passenger plane because of a problem with its Pratt & Whitney engines, which are 20% more fuel-efficient than current models. This was the first major issue with this new engine in over three years of testing. The delay will probably add to the CSeries’ development costs, but Bombardier still expects to begin deliveries in the second half of 2015. BOMBARDIER INC. (Toronto symbols BBD.A and BBD.B; www.bombardier.com) is the world’s third-largest commercial aircraft maker, behind Boeing and Airbus. It is also the world’s leading passenger railcar manufacturer....