Topic: How To Invest

The Successful Investor Hotline – Friday, August 14, 2020

Article Excerpt

CAE INC., $21.14, Toronto symbol CAE, is still a buy for long-term gains. The company generates value for investors as 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. CAE felt the full impact of the COVID-19 pandemic in its latest quarter: it delivered just two flight simulators (down from five a year earlier), while its pilot-training facilities operated at just 33% of capacity. As a result, overall revenue for the fiscal 2021 first quarter, ended June 30, 2020, fell 33.3%, to $550.5 million from $825.6 million a year earlier. Despite that drop, the latest revenue figure still beat the consensus forecast of $511 million. CAE lost $0.11 a share before one-time items (or a total of $30.3 million) in the latest quarter. However, that was much worse than the consensus estimate of a $0.06 a share loss. A year earlier, it earned…

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