Bombardier moves up results spurring expectation of CSeries order

Tue Apr 26, 2016 7:03pm EDT
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By Allison Lampert and Euan Rocha

MONTREAL/TORONTO (Reuters) - Canadian plane and train maker Bombardier Inc said on Tuesday it will be moving forward its first-quarter results by a day to Thursday, in a surprise announcement that only served to elevate market expectations of a big CSeries order this week.

The Quebec-based company has seen its stock surge this month on speculation of a major order for its CSeries passenger jets from Delta Air Lines. The Atlanta-based airline is set to host a media event on Thursday.

"With the move in Bombardier's shares and the further jump in the stock today, if they do not have a Delta order in their back pocket I would not want to be their management team come Thursday," said Morningstar analyst Chris Higgins.

"It looks like everyone's expecting it now and them moving the earnings date is also suggestive."

Two sources familiar with the matter told Reuters on Tuesday that one of Bombardier's CSeries test planes will be in Atlanta on Thursday.

Both Delta and Bombardier declined to comment on the matter.

Bombardier shares, which have risen 53 percent since April 11, closed at a seven-month high of C$1.99 on Tuesday on the Toronto Stock Exchange.

A deal with Delta would be a massive boost for Bombardier as it would be the first major U.S. airline to purchase the CSeries, which is entering service years late and billions of dollars over-budget.   Continued...

A Bombardier C-Series aircraft is displayed at the Singapore Airshow at Changi Exhibition Center February 18, 2016.  REUTERS/Edgar Su