Q: what do you think of cae's recent quarter. How do you view the stock going forward. I am a long time holder and wondering if I hold or move on? Thanks Stephen
5i Research Answer:
EPS of 27c beat estimates of 21c; Revenue of $1.089B beat estimates by 3%. EBITDA of $229M beat estimates by 2.4%. Three brokers lowered targets. Civil aviation was strong but the defense sector experienced lower than expected results and margin pressure. Defense margins were guided to mid-single-digit, vs consensus of 6% to 7%. Revenue rose 9.6%. Backlog did grow 11% to $11.8B. Not great results, but we think still worth keeping for its backlog and a potential growth recovery, which expected in 2024, based on consensus estimates.