CAE (CAE) Exceeds Q2 Earnings and Revenue Projections
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Earnings Performance: CAE reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.14, but slightly down from $0.18 a year ago, marking a +21.43% earnings surprise.
Revenue Growth: The company achieved revenues of $897.99 million for the quarter, surpassing expectations by 9.10% and showing an increase from $833.2 million in the previous year.
Stock Outlook: Despite the recent earnings report, CAE holds a Zacks Rank #4 (Sell), indicating expected underperformance in the near future, influenced by unfavorable estimate revisions.
Industry Context: The Aerospace - Defense Equipment industry is currently ranked in the bottom 29% of Zacks industries, which may impact CAE's stock performance, while another industry peer, Loar Holdings Inc., is set to report earnings soon.
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Analyst Views on LOAR
Wall Street analysts forecast LOAR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LOAR is 85.85 USD with a low forecast of 67.25 USD and a high forecast of 97.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 68.970
Low
67.25
Averages
85.85
High
97.00
Current: 68.970
Low
67.25
Averages
85.85
High
97.00
About LOAR
Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components. The Company’s products cover a diverse range of applications supporting major aircraft platforms in use and include auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions and motion and actuation devices, customized edge-lighted panels and knobs and annunciators for incandescent and LED illuminated pushbutton switches, among others. It serves three core end markets, such as commercial aerospace, business jet, and general aviation. The Company has established relationships with aerospace and defense original equipment manufacturers and Tier Ones worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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