Scotiabank Has Positive Forecast for CAE Q1 Earnings

Key Points

• Scotiabank turned more bullish on CAE’s near-term outlook, raising its Q1 2027 EPS estimate to $0.18 from $0.16 and keeping an Outperform rating on the stock.
• CAE just posted a modest earnings beat, reporting $0.31 EPS versus $0.30 expected and revenue of $953.79 million, with sales up 4% year over year.
• Analyst sentiment remains generally positive, with MarketBeat showing a consensus rating of Moderate Buy and an average price target of $32.00, though some later-period estimates and ratings have been more cautious.

CAE Inc (NYSE:CAE - Free Report) TSE: CAE - Investment analysts at Scotiabank raised their Q1 2027 EPS estimates for CAE in a report released on Friday, May 22nd. Scotiabank analyst K. Gupta now expects that the aerospace company will earn $0.18 per share for the quarter, up from their prior estimate of $0.16. Scotiabank currently has a "Outperform" rating on the stock. The consensus estimate for CAE's current full-year earnings is $0.91 per share. Scotiabank also issued estimates for CAE's Q2 2027 earnings at $0.19 EPS, Q3 2027 earnings at $0.26 EPS, Q4 2027 earnings at $0.29 EPS, FY2027 earnings at $0.91 EPS, Q2 2028 earnings at $0.22 EPS, Q3 2028 earnings at $0.29 EPS, Q4 2028 earnings at $0.32 EPS, FY2028 earnings at $1.02 EPS, FY2029 earnings at $1.24 EPS and FY2030 earnings at $1.51 EPS.

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

CAE has been the topic of a number of other research reports. Stifel Nicolaus initiated coverage on shares of CAE in a research note on Wednesday, March 4th. They set a "buy" rating on the stock. Jefferies Financial Group decreased their price target on shares of CAE from $31.00 to $27.00 and set a "hold" rating on the stock in a research note on Friday, April 17th. Canaccord Genuity Group initiated coverage on shares of CAE in a research note on Friday, March 13th. They set a "buy" rating on the stock. National Bank Financial reaffirmed an "outperform" rating on shares of CAE in a research note on Friday. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of CAE in a research note on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $32.00.

CAE Price Performance

CAE stock opened at $23.80 on Wednesday. The company has a market cap of $7.65 billion, a price-to-earnings ratio of 33.52, a PEG ratio of 2.60 and a beta of 1.03. The firm's fifty day moving average is $26.33 and its 200 day moving average is $28.60. The company has a quick ratio of 0.77, a current ratio of 0.96 and a debt-to-equity ratio of 0.55. 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 made changes to their positions in the stock. Transamerica Financial Advisors LLC grew its holdings in shares of CAE by 170.7% in the fourth 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 last quarter. Kestra Advisory Services LLC bought a new position in shares of CAE in the fourth quarter worth about $41,000. CIBC Private Wealth Group LLC bought a new position in shares of CAE in the third quarter worth about $42,000. Brown Brothers Harriman & Co. bought a new position in shares of CAE in the fourth quarter worth about $47,000. Finally, Parallel Advisors LLC grew its holdings in shares of CAE by 46.6% in the first quarter. Parallel Advisors LLC now owns 2,509 shares of the aerospace company's stock worth $65,000 after purchasing an additional 797 shares during the last quarter. 67.36% of the stock is currently owned by institutional investors.

More CAE News

Here are the key news stories impacting CAE this week:

• Positive Sentiment: Scotiabank raised its FY2027 EPS estimate to $0.91 from $0.88 and kept an Outperform rating, signaling confidence in CAE’s medium-term earnings trajectory.
• Positive Sentiment: Scotiabank also lifted its near-term Q1 2027, Q2 2027, Q3 2027 and FY2030 earnings estimates, and kept FY2028–FY2030 forecasts relatively strong, which supports the long-term growth story.
• Neutral Sentiment: The company’s recent earnings-call recap emphasized a “reset year” and longer-term ambition, suggesting management is balancing short-term execution with future growth plans. CAE Inc. Earnings Call: Reset Year, Long-Term Ambition
• Negative Sentiment: Scotiabank trimmed its Q4 2027, Q2 2028, Q4 2028, and FY2029 EPS estimates, indicating some caution around later-period profitability.
• Negative Sentiment: RBC’s cut to a Sector Perform rating from a more bullish stance may have added to investor caution, even though the new target still implies meaningful upside.

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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