Topic: How To Invest

The Successful Investor Hotline – Friday, August 12, 2016

Article Excerpt

CAE INC., $17.68, Toronto symbol CAE, is a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 30 countries, and makes mannequins and other medical-simulators for training health professionals. In its fiscal 2017 first quarter, which ended June 30, 2016, the company earned $70.9 million. That’s up 40.1% from $50.6 million a year earlier. Earnings per share also jumped 36.8%, rising to $0.26 from $0.19, on more shares outstanding. These figures exclude costs tied to its restructuring plan. On that basis, the latest earnings beat the consensus estimate of $0.20. Revenue gained 17.0%, to $651.6 million from $557.0 million. About 90% of the company’s sales come from foreign customers, so it benefited from the lower Canadian dollar. Those exchange rate differences added $16.3 million to CAE’s revenue and $1.5 million to its earnings. As well, the company recently completed its $25.7…