Topic: How To Invest

The Successful Investor Hotline – Friday, November 11, 2016

Article Excerpt

CAE INC., $19.18, 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 second quarter, ended September 30, 2016, the company earned $48.3 million, or $0.18 a share. That’s down 35.9% from $75.3 million, or $0.28, a year earlier. Those year-earlier earnings benefited from a $17.2 million tax recovery. If you disregard all unusual items, earnings per share in the quarter gained 22.2%, to $0.22 from $0.18. On that basis, the latest earnings beat the consensus estimate of $0.21. Overall revenue rose 3.0%, to $635.5 million from $616.8 million. Sales of flight simulators and pilot-training services to airlines (56% of total revenue) declined 2.9% in the quarter. That’s partly due to a change in accounting policy. As a result, the company will only recognize revenue when it completes the manufacture of a flight simulator instead…