CAE Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

CAE (TSX: CAE) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), CAE missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share improved.

Margins increased across the board.

Revenue details
CAE logged revenue of $445.7 million. The 13 analysts polled by S&P Capital IQ expected a top line of $459.2 million. GAAP sales were 7.8% higher than the prior-year quarter's $413.5 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.18. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. GAAP EPS of $0.18 for Q3 were 13% higher than the prior-year quarter's $0.16 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.7%, 1,790 basis points better than the prior-year quarter. Operating margin was 16.3%, 50 basis points better than the prior-year quarter. Net margin was 10.1%, 20 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $507.9 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $1.85 billion. The average EPS estimate is $0.69.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 96 members out of 103 rating the stock outperform, and seven members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give CAE a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CAE is outperform, with an average price target of $12.94.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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