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 and GAAP earnings per share increased significantly.
Margins expanded across the board.
CAE logged revenue of $507.7 million. The 11 analysts polled by S&P Capital IQ looked for revenue of $510.9 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $479.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.22. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.21 for Q4 were 17% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.9%, 70 basis points better than the prior-year quarter. Operating margin was 18.2%, 120 basis points better than the prior-year quarter. Net margin was 10.5%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $494.2 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $2.10 billion. The average EPS estimate is $0.77.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 91 members out of 99 rating the stock outperform, and eight members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give CAE a green thumbs-up, and three 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 $13.23.
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