National Bank Financial Has Negative View of CAE Q1 Earnings

Key Points

• National Bank Financial lowered its Q1 2027 EPS estimate for CAE to $0.14 from $0.16, even while keeping an Outperform rating on the stock. The firm also cut multiple longer-term earnings estimates, signaling a softer outlook.
• CAE’s latest quarterly results topped expectations, with EPS of $0.31 versus the $0.30 consensus and revenue of $953.79 million versus estimates of $924.83 million. The company also reaffirmed FY2027 guidance of 0.880-0.930 EPS.
• Analyst sentiment remains mixed, with a consensus rating of Moderate Buy but some caution from recent moves like RBC cutting its price target to $36 and downgrading to Hold. The average price target across analysts is $32.00.

CAE Inc (NYSE:CAE - Free Report) TSE: CAE - Equities research analysts at National Bank Financial reduced their Q1 2027 EPS estimates for CAE in a research note issued to investors on Monday, May 25th. National Bank Financial analyst C. Doerksen now forecasts that the aerospace company will post earnings of $0.14 per share for the quarter, down from their prior estimate of $0.16. National Bank Financial has a "Outperform" rating on the stock. The consensus estimate for CAE's current full-year earnings is $0.89 per share. National Bank Financial also issued estimates for CAE's Q3 2027 earnings at $0.23 EPS, Q4 2027 earnings at $0.31 EPS, FY2027 earnings at $0.88 EPS, Q1 2028 earnings at $0.20 EPS, Q2 2028 earnings at $0.24 EPS, Q3 2028 earnings at $0.29 EPS, Q4 2028 earnings at $0.36 EPS and FY2028 earnings at $1.09 EPS.

CAE (NYSE:CAE - Get Free Report) TSE: CAE last posted its quarterly earnings results on Thursday, May 21st. The aerospace company reported $0.31 earnings per share for the quarter, topping analysts' consensus estimates of $0.30 by $0.01. The firm had revenue of $953.79 million for the quarter, compared to analyst estimates of $924.83 million. CAE had a net margin of 6.36% and a return on equity of 7.45%. CAE's quarterly revenue was up 4.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.47 earnings per share. CAE has set its FY 2027 guidance at 0.880-0.930 EPS.

A number of other equities analysts have also weighed in on CAE. Scotiabank restated an "outperform" rating on shares of CAE in a research report on Tuesday, February 17th. Zacks Research upgraded CAE from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 13th. Royal Bank Of Canada dropped their target price on CAE from $42.00 to $36.00 and set a "sector perform" rating for the company in a report on Tuesday. TD Securities restated a "buy" rating on shares of CAE in a report on Tuesday, February 17th. Finally, Stifel Nicolaus initiated coverage on CAE in a report on Wednesday, March 4th. They issued a "buy" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $32.00.

CAE Stock Performance

CAE opened at $24.67 on Thursday. The firm has a market capitalization of $7.93 billion, a PE ratio of 34.74, a PEG ratio of 2.73 and a beta of 1.03. CAE has a twelve month low of $22.76 and a twelve month high of $34.24. The firm's 50-day moving average price is $26.26 and its 200 day moving average price is $28.58. The company has a current ratio of 0.96, a quick ratio of 0.77 and a debt-to-equity ratio of 0.55.

Hedge Funds Weigh In On CAE

Hedge funds have recently modified their holdings of the business. Transamerica Financial Advisors LLC grew its holdings in shares of CAE by 170.7% during the 4th quarter. Transamerica Financial Advisors LLC now owns 1,267 shares of the aerospace company's stock worth $39,000 after purchasing an additional 799 shares during the period. Kestra Advisory Services LLC acquired a new position in CAE in the 4th quarter valued at about $41,000. CIBC Private Wealth Group LLC acquired a new position in CAE in the 3rd quarter valued at about $42,000. Brown Brothers Harriman & Co. purchased a new stake in CAE during the fourth quarter worth about $47,000. Finally, Purpose Unlimited Inc. purchased a new stake in CAE during the fourth quarter worth about $74,000. 67.36% of the stock is currently owned by hedge funds and other institutional investors.

CAE News Roundup

Here are the key news stories impacting CAE this week:

• Positive Sentiment: Scotiabank raised some near-term and medium-term earnings estimates for CAE, including FY2027 EPS to $0.91 and Q1 2027 EPS to $0.18, while keeping an Outperform rating. National Bank Financial also maintains an Outperform view despite recent estimate reductions.
• Positive Sentiment: CAE announced a teaming agreement with Saab to support Canada’s AEW&C program on the GlobalEye platform, reinforcing its position in training and simulation solutions and potentially supporting future contract wins.
• Neutral Sentiment: Recent earnings-call coverage pointed to a “reset year” and a longer-term ambition, suggesting management is still focused on growth but not implying an immediate catalyst. CAE Inc. Earnings Call: Reset Year, Long-Term Ambition
• Negative Sentiment: National Bank Financial cut multiple future EPS estimates for CAE, including Q1 2027, Q3 2027, Q4 2027, Q1/Q2/Q3/Q4 2028, FY2027, and FY2028, signaling a softer earnings trajectory than previously expected.
• Negative Sentiment: RBC reduced its price target on CAE to $36 from $42 and downgraded the stock to Hold, while another report also said RBC remained on Hold; these moves add to investor caution. RBC chops price target on CAE

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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