FY2027 Earnings Forecast for CAE Issued By Scotiabank

Key Points

• Scotiabank raised CAE’s FY2027 EPS forecast to $0.91 from $0.86, above the current consensus estimate of $0.87 and within the company’s $0.87–$0.92 guidance range.
• CAE’s latest quarterly results exceeded expectations, with EPS of $0.19 versus the $0.17 consensus and revenue of $826.42 million versus estimates of $796.86 million. Revenue increased 6.8% year over year.
• Despite the improved earnings outlook, analyst sentiment remains cautious: CAE has a consensus “Hold” rating and an average price target of $31, while the stock recently traded at $24.91.

CAE Inc (NYSE:CAE - Free Report) TSE: CAE - Investment analysts at Scotiabank raised their FY2027 earnings per share estimates for shares of CAE in a research report issued to clients and investors on Wednesday, August 19th. Scotiabank analyst K. Gupta now anticipates that the aerospace company will post earnings per share of $0.91 for the year, up from their previous forecast of $0.86. The consensus estimate for CAE's current full-year earnings is $0.87 per share.

CAE (NYSE:CAE - Get Free Report) TSE: CAE last announced its quarterly earnings results on Wednesday, August 12th. The aerospace company reported $0.19 EPS for the quarter, beating analysts' consensus estimates of $0.17 by $0.02. The company had revenue of $826.42 million during the quarter, compared to analysts' expectations of $796.86 million. CAE had a return on equity of 7.45% and a net margin of 6.36%.CAE's revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.21 EPS. CAE has set its FY 2027 guidance at 0.870-0.920 EPS.

Several other brokerages also recently commented on CAE. Royal Bank Of Canada cut their target price on shares of CAE from $42.00 to $36.00 and set a "sector perform" rating on the stock in a report on Tuesday, May 26th. Jefferies Financial Group reissued a "hold" rating on shares of CAE in a research report on Thursday, August 13th. Zacks Research raised shares of CAE from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 13th. Morgan Stanley cut shares of CAE from an "equal weight" rating to an "underweight" rating in a research report on Wednesday, July 15th. Finally, Weiss Ratings downgraded CAE from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, July 23rd. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, CAE presently has a consensus rating of "Hold" and an average target price of $31.00.

CAE Price Performance

Shares of NYSE CAE opened at $24.91 on Monday. The stock has a market cap of $8.01 billion, a P/E ratio of 35.09, a P/E/G ratio of 2.85 and a beta of 1.01. The firm has a 50 day moving average price of $25.65 and a 200 day moving average price of $26.74. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.77 and a current ratio of 0.96. CAE has a 52-week low of $22.76 and a 52-week high of $34.24.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Millennium Management LLC bought a new stake in CAE in the 1st quarter valued at approximately $4,170,000. Goldman Sachs Group Inc. grew its stake in shares of CAE by 142.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,709,480 shares of the aerospace company's stock worth $42,036,000 after acquiring an additional 1,004,820 shares in the last quarter. United Services Automobile Association raised its holdings in shares of CAE by 4.5% in the first quarter. United Services Automobile Association now owns 10,822 shares of the aerospace company's stock valued at $265,000 after purchasing an additional 462 shares during the last quarter. Prudential Financial Inc. acquired a new stake in shares of CAE in the second quarter valued at approximately $287,000. Finally, Marshall Wace LLP bought a new stake in shares of CAE in the second quarter worth $3,655,000. 67.36% of the stock is currently owned by institutional investors.

CAE Company Profile

CAE Inc is a global leader in training and simulation technologies, headquartered in Montréal, Canada. The company specializes in the design and manufacture of high-fidelity flight simulators and training systems for civil aviation, defense and security, and healthcare markets. Leveraging advanced software and hardware integration, CAE delivers comprehensive training solutions that address pilot proficiency, mission readiness and patient safety across a wide range of platforms.

In civil aviation, CAE partners with major airlines, aircraft manufacturers and flight schools to provide pilot training services, courseware development and crew scheduling solutions.

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