CAE Misses on Revenues but Beats on EPS

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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