CAE Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

CAE (TSX: CAE) reported earnings on May 16. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q4), CAE met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share dropped. GAAP earnings per share shrank significantly.


Margins dropped across the board.

Revenue details
 CAE booked revenue of $578.0 million. The 12 analysts polled by S&P Capital IQ expected revenue of $575.3 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $507.7 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 $0.21. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. Non-GAAP EPS of $0.21 for Q4 were 4.5% lower than the prior-year quarter's $0.22 per share. GAAP EPS of $0.17 for Q4 were 19% lower than the prior-year quarter's $0.21 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 28.5%, 540 basis points worse than the prior-year quarter. Operating margin was 14.5%, 370 basis points worse than the prior-year quarter. Net margin was 7.5%, 300 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $525.7 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $2.15 billion. The average EPS estimate is $0.74.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 92 members out of 100 rating the stock outperform, and eight members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give CAE a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CAE is hold, with an average price target of $12.11.

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The article CAE Beats Up on Analysts Yet Again 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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