The Successful Investor Hotline – Thursday, May 20, 2016

Article Excerpt

CAE INC., $16.00, Toronto symbol CAE, is a leading maker of flight simulators and operates pilot-training schools in over 30 countries. It also produces simulators for military aircraft as well as mannequins and other medical-simulators for training health professionals. The company earned $239.3 million in the year ended March 31, 2016. That’s up 18.9% from $201.2 million a year earlier. Earnings per share also jumped 17.1%, rising to $0.89 from $0.76, on more shares outstanding. If you exclude costs tied to its restructuring plan and a tax adjustment, CAE earned $0.86 a share for the fiscal year. That beat the consensus estimate of $0.84. Revenue gained 11.9%, to $2.5 billion from $2.25 billion. About 90% of the company’s revenue comes from foreign customers, so it benefited from the lower Canadian dollar. Those exchange rate differences added $126.1 million to CAE’s 2016 revenue, and $11.1 million to its earnings. Sales of flight simulators and pilot-training services to airlines (57% of total revenue) gained 10.4%. CAE…