CAE Misses on Revenues but Beats on EPS

Updated

CAE (TSX: CAE) reported earnings on Feb. 13. 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 increased significantly and GAAP earnings per share dropped.


Margins dropped across the board.

Revenue details
CAE booked revenue of $523.8 million. The 12 analysts polled by S&P Capital IQ predicted sales of $548.2 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $445.7 million.

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 13 earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS of $0.15 for Q3 were 12% lower than the prior-year quarter's $0.17 per share.

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 29.0%, 470 basis points worse than the prior-year quarter. Operating margin was 14.5%, 220 basis points worse than the prior-year quarter. Net margin was 7.2%, 290 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $606.0 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $2.13 billion. The average EPS estimate is $0.70.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 93 members out of 102 rating the stock outperform, and nine members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 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 $12.83.

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The article CAE Misses on Revenues but Beats on EPS originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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