The Successful Investor Hotline – Friday, May 16, 2014

Article Excerpt

CAE INC., $14.55, Toronto symbol CAE, is the world’s leading maker of flight simulators for commercial airlines. It also makes simulators for militaries and operates pilot-training schools. In its fiscal 2014 fourth quarter, which ended March 31, 2014, CAE’s earnings rose 39.2%, to $60.0 million from $43.1 million a year earlier. Per-share earnings gained 35.3%, to $0.23 from $0.17, on more shares outstanding. That beat the consensus estimate of $0.20. Revenue rose 3.1%, to $583.4 million from $565.6 million. CAE received orders for eight flight simulators during the quarter, which brought its full-year total to a new record of 48. Since the quarter ended, it has sold an additional four simulators. The company’s military-related businesses also continue to win new contracts. The company ended fiscal 2014 with a $4.2-billion order backlog, up 13.1% from a year ago. That’s equal to roughly two years’ worth of revenue. CAE is our #1 buy for 2014. CAE was recently covered in the May 2014 issue of The Successful…