Topic: How To Invest

The Successful Investor Hotline – Friday, August 12, 2022

Article Excerpt

CAE INC., $27.56, Toronto symbol CAE, remains a buy for long-term gains. The company is a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 35 countries and makes mannequins and other medical-simulators for training health professionals. CAE reported lower-than-expected revenue and earnings for its latest quarter. The company also cut its full year outlook on weaker earnings from legacy contracts at its military-related operations in the U.S. As well, staffing shortages and delays securing certain parts have hindered deliveries. The news caused the stock to fall 20% this week. The company’s revenue in its fiscal 2023 first quarter ended June 30, 2022, jumped 24.0%, to $933.3 million from $752.7 million a year earlier. However, that missed the consensus forecast of $936.4 million. The higher revenue is mainly due to CAE’s purchase of the military training operations of L3Harris Technologies Inc. (New York symbol LHX) in July 2021 for $1.05 billion U.S. This U.S.-based business makes…