Topic: How To Invest

The Successful Investor Hotline – Friday, November 15, 2019

Article Excerpt

CAE INC., $35.49, Toronto symbol CAE, remains a buy for our subscribers. CAE is 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. Investors enjoyed a 4% gain this week after the company reported stronger-than-expected quarterly results. In its fiscal 2020 second quarter, ended September 30, 2019, CAE’s revenue jumped 20.6%, to $896.8 million from $743.8 million a year earlier. That easily beat the consensus forecast of $849.9 million. The main driver of that increase was CAE’s civilian aviation business (59% of total revenue): it reported 34.8% higher revenue in the quarter. That’s due to $602.9 million in new training contracts and the sale of 11 flight simulators. Revenue at the military division (38%) improved 5.1%. This business won $362.1 million in new orders, mainly from the U.S. Department of Defense. Revenue at the health-care division (3%) was flat. Thanks to the overall revenue gains, CAE’s…