The Successful Investor Hotline – Friday, February 6, 2015

Article Excerpt

CAE INC., $15.58, Toronto symbol CAE, earned $52.1 million, or $0.20 a share, in its fiscal 2015 third quarter, which ended December 31, 2014. That beat the consensus forecast of $0.19. The latest earnings are also up 14.5% from $45.5 million, or $0.17 a share, a year earlier. Overall revenue rose 11.0%, to $559.1 million from $503.9 million, also beating the consensus forecast of $554.4 million. Revenue from sales of flight simulators and pilot-training services to commercial airlines (57% of the total) rose 14.2%. That’s mainly due to higher simulator sales and the positive impact of the lower Canadian dollar (overseas customers supply 90% of CAE’s revenue). Revenue from CAE’s military division (39%) gained 6.9% on greater demand from European clients and favourable foreign exchange rates. The remaining 4% of the company’s sales come from medical-simulation products, such as mannequins for training nurses and medical students. This business’s sales rose 6.5%, thanks to new products. The company ended the quarter with an order backlog…