CAE Earnings: Here’s Why the Stock is Down Now

CAE Inc. (NYSE:CAE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1%.

CAE Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.18 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Rose 17.33% to $522.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CAE Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company beat the mean analyst estimate of $0.17. It missed the average revenue estimate of $536.47 million.

Quoting Management: “Our results for the quarter were as we anticipated, given the integration and restructuring efforts underway in our Civil and Military segments,” said Marc Parent, CAE”s President and Chief Executive Officer. “In Civil Products, simulator wins in the quarter put us on track for annual sales in the mid-30s. The integration of recently acquired Oxford is progressing as planned, and we continue to expect significant synergies in Civil Training as this effort is concluded. In Military, order levels continued to reflect the delays currently inherent to the defence market, but we had a good win rate and we remain confident given our high level of bid activity.”

Key Stats (on next page)…

Revenue decreased 0.13% from $522.79 million in the previous quarter. EPS increased 38.46% from $0.13 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.23 to a profit $0.22. For the current year, the average estimate has moved down from a profit of $0.73 to a profit of $0.71 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)