Topic: How To Invest

The Successful Investor Hotline – Friday, August 11, 2017

Article Excerpt

CAE INC., $21.00, Toronto symbol CAE, is a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 35 countries and makes mannequins and other medical-simulators for training health professionals. CAE has now sold its 49% stake in a Chinese pilot-training joint venture. Its partner in the business, China Southern Airlines, paid $96 million U.S. for CAE’s interests. Under the terms of the deal, CAE will continue to supply simulators and support services for the China-based business. Meantime, CAE earned $63.8 million in its fiscal 2018 first quarter, ended June 30, 2017. That’s down 10.0% from the $70.9 million it earned a year earlier. Due to fewer shares outstanding, earnings per share declined at a slower rate of 7.7%, to $0.24 from $0.26. That missed the consensus estimate of $0.25. The earnings drop is mainly because tax credits for the company’s operations in Brazil resulted…