The Successful Investor Hotline – Friday, November 14, 2014

Article Excerpt

CAE INC., $14.58, Toronto symbol CAE, earned $42.0 million in its fiscal 2015 second quarter, which ended September 30, 2014. That’s up 9.9% from $38.2 million a year earlier. Per-share earnings rose at a slower rate of 6.7%, to $0.16 from $0.15, on more shares outstanding. These figures exclude earnings from CAE’s mining operations, which make simulators that train workers to operate underground trucks, loaders and drills. The company recently announced plans to sell this business, as weak commodity prices have prompted mining firms to cut spending on exploration and expansion projects. On this basis, the latest earnings matched the consensus estimate. Overall revenue rose 10.7%, to $529.4 million from $478.2 million, beating the consensus forecast of $508.9 million. Revenue from sales of flight simulators and pilot-training services to commercial airlines (56% of the total) rose 9.9%. That’s mainly because the lower Canadian dollar enhanced the contribution of CAE’s overseas operations. Foreign currency gains also fuelled a 9.4% increase in revenue from military clients…