CAE, Inc. (CAE) Tops Q2 EPS by 3c, Revenues Beat

CAE, Inc. (NYSE: CAE) reported Q2 EPS of $0.28, $0.03 better than the analyst estimate of $0.25. Revenue for the quarter came in at $896.8 million versus the consensus estimate of $611.18 million.

• Revenue of $896.8 million up 21% vs. $743.8 million in Q2 FY2019
• Segment operating income(1) of $124.8 million ($126.0 million before specific items)(2) up 28% vs. $98.7 million in Q2 FY2019
• EPS of $0.28 vs. $0.23 in Q2 FY2019
• Order intake(3) of $995.4 million for 1.11x book-to-sales(3) and $9.2 billion backlog(3)
• Concluded 15-year exclusive business aviation training services agreement with Directional Aviation Capital and acquisition of 50 percent of SIMCOM post quarter

"CAE had good growth in the second quarter, with 21 percent higher revenue and 28 percent higher operating income, and we secured nearly $1.0 billion of orders for a $9.2 billion backlog," said Marc Parent, CAE's President and Chief Executive Officer. "Performance was led by Civil with 60 percent operating income growth and higher margins, and continued good momentum signing long-term training agreements with our airline partners. In business aviation, we substantially concluded the integration of Bombardier Business Aircraft Training and I am very pleased with its performance to date. Further strengthening our position is our strategic partnership and exclusive 15-year training outsourcing with Directional Aviation Capital, one of the largest, fastest growing, and most innovative corporate aviation service companies globally. In Defence, modest top-line growth and lower operating income reflect order delays and the timing of program milestones on contracts in backlog. We continue to expect a stronger second half in Defence, a view supported by a healthy book-to-sales ratio in the quarter and a robust pipeline. In Healthcare, we received orders for new products that we plan to deliver in the coming quarters, and we enhanced our position in the large U.S. hospital market. As we look to the remainder of the fiscal year, our overall outlook for the Company remains largely unchanged, with a higher growth outlook in Civil offsetting lower expected growth in Defence."

For earnings history and earnings-related data on CAE, Inc. (CAE) click here.

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