Q: I have owned CAE for a few years now, and it's been kind of a dog to say the least. What did you think of their earnings?
5i Research Answer:
EPS of 24c beat estimates of 20c. Sales of $1.05B beat estimates by ~3%. EPS quadrupled from last year's quarter. Revenue rose 13%, with civil up 12% and defence up 14%. Backlog rose 12% to more than $11B. Management called for 3-year compound growth of 20% and noted the defence sector looks to be in the early stages of an up-cycle. There has been a nice improvement here overall.