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Shareholders might have noticed that Bombardier Inc. (TSE:BBD.B) filed its quarterly result this time last week. The early response was not positive, with shares down 6.0% to CA$85.76 in the past week. It looks like a pretty bad result, all things considered. Although revenues of US$1.5b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 43% to hit US$0.37 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Bombardier from 14 analysts is for revenues of US$9.22b in 2025. If met, it would imply an okay 3.5% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 116% to US$6.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$9.17b and earnings per share (EPS) of US$6.58 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
View our latest analysis for Bombardier
The consensus price target held steady at CA$112, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Bombardier analyst has a price target of CA$140 per share, while the most pessimistic values it at CA$86.79. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bombardier's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Bombardier's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 8.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Bombardier.