Bombardier, Inc. (TSE:BBD.B), the Canadian plane and train maker, recently announced that it won a contract valued at CA$391 million. The news helped the troubled Bombardier stock breathe a sigh of relief.
Bombardier shares gained as much as 7.7%, hitting a share price of CA$0.84 in intraday trading on the Toronto Stock Exchange on Friday.
In a statement released earlier in the day, Bombardier Transportation said the contract includes building trains for the new “Valley Line” light rail transit project in Edmonton, Alberta. (Source: “Bombardier Wins Order to Supply Light Rail Transit System for City of Edmonton’s Valley Line in Canada,” Yahoo! Finance, February 12, 2016.)
Bombardier, which has more than 4,000 employees, is part of a consortium (TransEd) working on the line in collaboration with Bechtel, EllisDon, and Fengate.
The first phase of the new line is an 11-stop, 13-kilometer segment from the southeast of the city to downtown Edmonton.
Bombardier stock, which peaked above CA$25.00 in the year 2000, plunged to below CA$1.00 late last month for the first time in 25 years. The stock is down 40% this year.
Bombardier is set to publish its fourth-quarter and fiscal 2015 financial results on Wednesday. The company is expected to report CA$0.02 per share in adjusted net earnings on CA$5.53 billion in revenue, down from CA$0.04 adjusted net earnings per share on revenue of CA$5.9 billion a year earlier, according to Capital IQ data. (Source: “Bombardier Analyst Estimates,” Yahoo! Finance, last accessed February 12, 2016.)