CAE Set to Report Q4 Earnings with Significant Decline Expected
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: seekingalpha
- Earnings Announcement: CAE is set to release its Q4 earnings on May 21st after market close, with consensus EPS estimated at $0.30, reflecting a 36.2% year-over-year decline, and revenue expected at $941.22 million, down 25.9% year-over-year, indicating a challenging market environment for the company.
- Historical Performance: Over the past two years, CAE has beaten EPS and revenue estimates 100% of the time, providing some confidence to investors despite the current expectations showing significant declines, which may affect stock performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and nine downward revisions, while revenue estimates have experienced no upward revisions and eight downward revisions, reflecting analysts' pessimistic outlook on the company's future performance, potentially impacting investor sentiment.
- Acquisition Speculation: Despite the declining earnings outlook, CAE's stock has ticked higher amid speculation of takeover interest, indicating market attention on the company's strategic direction, which may attract potential investors looking for opportunities.
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Analyst Views on CAE
Wall Street analysts forecast CAE stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 26.940
Low
33.97
Averages
38.04
High
42.10
Current: 26.940
Low
33.97
Averages
38.04
High
42.10
About CAE
CAE Inc. is a technology company. Its segments include Civil Aviation, and Defense and Security. The Civil Aviation training segment provides comprehensive training solutions for flight, cabin, maintenance, ground personnel and air traffic controllers in commercial, business and helicopter aviation, a complete range of flight simulation training devices, ab initio pilot training and crew sourcing services, as well as airline operations digital solutions. It manages approximately 363 full-flight simulators. Its training systems include CAE Real-time Insights and Standardized Evaluations (CAE Rise), which improves training through the integration of untapped flight and simulator data-driven insights into training. The Defense and Security segment is a global training and simulation provider delivering scalable, platform-independent solutions. The Defense and Security market includes defense forces, original equipment manufacturers, government agencies and public safety organizations.
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.
CAE Inc Sets Long-Term Financial Targets and Transformation Plans
- Long-Term Financial Goals: CAE Inc has established clear long-term financial targets, aiming to achieve structural cost reductions of $125 to $150 million by 2030 through its transformation plan, which is designed to enhance overall profitability and market competitiveness.
- Defense Segment Growth: With rising defense budgets across NATO and allied nations, CAE Inc is well-positioned to capitalize on significant growth opportunities in its defense segment, which is expected to drive an increase in market share in this rapidly expanding sector.
- Civil Market Challenges: The ongoing conflict in the Middle East has adversely affected CAE's fiscal 2026 results and is anticipated to continue impacting the first half of fiscal 2027, leading to a lighter backlog of civil full flight simulators that may hinder future revenue.
- Capital Allocation Strategy: CAE Inc is committed to maintaining an investment-grade balance sheet while pursuing returns through capital allocation over the next four years, balancing shareholder returns with organic investments to support its transformation and growth initiatives.
See More
CAE Reports Q4 2026 Earnings with Growth Outlook
- Earnings Highlights: CAE reported a Q4 2026 Non-GAAP EPS of C$0.42 and revenue of C$1.32 billion, reflecting a 3.9% year-over-year growth, indicating stable performance despite limited growth potential.
- Annual Performance Overview: For FY2026, total revenue reached C$4.9 billion with diluted EPS at C$0.97 and adjusted EPS at C$1.20, showcasing the company's effectiveness in operational efficiency and ongoing investments.
- Future Outlook: CAE anticipates low-single-digit percentage revenue growth for FY2027, with adjusted segment operating income margin projected between 14.6% and 15.1%, reflecting a cautiously optimistic view on future market conditions.
- Cash Conversion Rate: The adjusted EPS for FY2027 is expected to range from C$1.21 to C$1.28, with a cash conversion rate target set between 85% and 95%, demonstrating the company's robust financial management strategy.
See More
Multiple Companies Set to Report Earnings
- Ross Stores Earnings Forecast: Ross Stores (ROST) is expected to report earnings per share of $1.70, reflecting a 15.65% increase year-over-year, indicating the company's sustained growth potential in the discount retail market.
- TTWO Earnings Outlook: Take-Two Interactive (TTWO) anticipates earnings per share of $0.20, representing a 72.60% decrease compared to last year, highlighting challenges in the gaming industry, yet the company has consistently beaten expectations, showcasing resilience.
- CPRT Earnings Projection: Copart (CPRT) forecasts earnings per share of $0.41, a slight decline of 2.38% year-over-year, but its price-to-earnings ratio of 21.04 remains above the industry average, suggesting future growth potential.
- WDAY Earnings Expectations: Workday (WDAY) expects earnings per share of $1.17, a 25.81% increase from the previous year, demonstrating strong performance in the internet software sector, with a price-to-earnings ratio of 24.78 indicating ongoing profitability growth.
See More
CAE Set to Report Q4 Earnings with Significant Decline Expected
- Earnings Announcement: CAE is set to release its Q4 earnings on May 21st after market close, with consensus EPS estimated at $0.30, reflecting a 36.2% year-over-year decline, and revenue expected at $941.22 million, down 25.9% year-over-year, indicating a challenging market environment for the company.
- Historical Performance: Over the past two years, CAE has beaten EPS and revenue estimates 100% of the time, providing some confidence to investors despite the current expectations showing significant declines, which may affect stock performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and nine downward revisions, while revenue estimates have experienced no upward revisions and eight downward revisions, reflecting analysts' pessimistic outlook on the company's future performance, potentially impacting investor sentiment.
- Acquisition Speculation: Despite the declining earnings outlook, CAE's stock has ticked higher amid speculation of takeover interest, indicating market attention on the company's strategic direction, which may attract potential investors looking for opportunities.
See More
CAE Pursues Strategic Alternatives for Flightscape Business
- Strategic Alternatives: CAE has announced it is exploring strategic alternatives for its aviation software business, Flightscape, including options for strategic partnerships, investments, or a sale, aiming to pave the way for Flightscape's next growth phase while allowing CAE to sharpen its focus on core simulation and training capabilities.
- Business Focus Shift: This transaction is intended to enhance CAE's long-term value creation, with Flightscape being a high-growth, cloud-native SaaS platform that supports the aviation ecosystem through advanced planning and operations control, indicating CAE's commitment to future market opportunities.
- Team Strength: Flightscape is led by a team of over 600 professionals across the Americas, Europe, and Asia, providing a strong competitive edge in the aviation software sector, which further enhances CAE's influence in this market.
- Positive Market Reaction: In pre-market trading, CAE shares were priced at $27.36, up 1.50% from the previous trading day, reflecting investor optimism regarding CAE's strategic adjustments, which may drive future stock performance.
See More
CAE Pursues Strategic Alternatives for Flightscape to Optimize Portfolio
- Strategic Alternatives Exploration: CAE has announced it is pursuing strategic alternatives for its aviation software business, Flightscape, as part of its portfolio optimization efforts aimed at driving long-term shareholder value, reflecting the maturity of Flightscape as a standalone high-growth software business.
- Focus on Core Competencies: By assessing a range of options, including strategic partnerships, investments, or a sale, CAE aims to pave the way for Flightscape's next phase of growth while enhancing its core simulation and training capabilities.
- Increased Market Confidence: CAE's CEO stated that Flightscape, as a strong and differentiated business, may be better positioned for future development through alternative ownership or partnership structures, demonstrating the company's confidence in its potential.
- Global Team Support: As a cloud-native SaaS platform, Flightscape is supported by over 600 professionals dedicated to enhancing the global aviation ecosystem, with sustained customer adoption and investment positioning it favorably in the market.
See More
CAE Inc Sets Long-Term Financial Targets and Transformation Plans
- Long-Term Financial Goals: CAE Inc has established clear long-term financial targets, aiming to achieve structural cost reductions of $125 to $150 million by 2030 through its transformation plan, which is designed to enhance overall profitability and market competitiveness.
- Defense Segment Growth: With rising defense budgets across NATO and allied nations, CAE Inc is well-positioned to capitalize on significant growth opportunities in its defense segment, which is expected to drive an increase in market share in this rapidly expanding sector.
- Civil Market Challenges: The ongoing conflict in the Middle East has adversely affected CAE's fiscal 2026 results and is anticipated to continue impacting the first half of fiscal 2027, leading to a lighter backlog of civil full flight simulators that may hinder future revenue.
- Capital Allocation Strategy: CAE Inc is committed to maintaining an investment-grade balance sheet while pursuing returns through capital allocation over the next four years, balancing shareholder returns with organic investments to support its transformation and growth initiatives.
See More
CAE Reports Q4 2026 Earnings with Growth Outlook
- Earnings Highlights: CAE reported a Q4 2026 Non-GAAP EPS of C$0.42 and revenue of C$1.32 billion, reflecting a 3.9% year-over-year growth, indicating stable performance despite limited growth potential.
- Annual Performance Overview: For FY2026, total revenue reached C$4.9 billion with diluted EPS at C$0.97 and adjusted EPS at C$1.20, showcasing the company's effectiveness in operational efficiency and ongoing investments.
- Future Outlook: CAE anticipates low-single-digit percentage revenue growth for FY2027, with adjusted segment operating income margin projected between 14.6% and 15.1%, reflecting a cautiously optimistic view on future market conditions.
- Cash Conversion Rate: The adjusted EPS for FY2027 is expected to range from C$1.21 to C$1.28, with a cash conversion rate target set between 85% and 95%, demonstrating the company's robust financial management strategy.
See More
Multiple Companies Set to Report Earnings
- Ross Stores Earnings Forecast: Ross Stores (ROST) is expected to report earnings per share of $1.70, reflecting a 15.65% increase year-over-year, indicating the company's sustained growth potential in the discount retail market.
- TTWO Earnings Outlook: Take-Two Interactive (TTWO) anticipates earnings per share of $0.20, representing a 72.60% decrease compared to last year, highlighting challenges in the gaming industry, yet the company has consistently beaten expectations, showcasing resilience.
- CPRT Earnings Projection: Copart (CPRT) forecasts earnings per share of $0.41, a slight decline of 2.38% year-over-year, but its price-to-earnings ratio of 21.04 remains above the industry average, suggesting future growth potential.
- WDAY Earnings Expectations: Workday (WDAY) expects earnings per share of $1.17, a 25.81% increase from the previous year, demonstrating strong performance in the internet software sector, with a price-to-earnings ratio of 24.78 indicating ongoing profitability growth.
See More
CAE Set to Report Q4 Earnings with Significant Decline Expected
- Earnings Announcement: CAE is set to release its Q4 earnings on May 21st after market close, with consensus EPS estimated at $0.30, reflecting a 36.2% year-over-year decline, and revenue expected at $941.22 million, down 25.9% year-over-year, indicating a challenging market environment for the company.
- Historical Performance: Over the past two years, CAE has beaten EPS and revenue estimates 100% of the time, providing some confidence to investors despite the current expectations showing significant declines, which may affect stock performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and nine downward revisions, while revenue estimates have experienced no upward revisions and eight downward revisions, reflecting analysts' pessimistic outlook on the company's future performance, potentially impacting investor sentiment.
- Acquisition Speculation: Despite the declining earnings outlook, CAE's stock has ticked higher amid speculation of takeover interest, indicating market attention on the company's strategic direction, which may attract potential investors looking for opportunities.
See More
CAE Pursues Strategic Alternatives for Flightscape Business
- Strategic Alternatives: CAE has announced it is exploring strategic alternatives for its aviation software business, Flightscape, including options for strategic partnerships, investments, or a sale, aiming to pave the way for Flightscape's next growth phase while allowing CAE to sharpen its focus on core simulation and training capabilities.
- Business Focus Shift: This transaction is intended to enhance CAE's long-term value creation, with Flightscape being a high-growth, cloud-native SaaS platform that supports the aviation ecosystem through advanced planning and operations control, indicating CAE's commitment to future market opportunities.
- Team Strength: Flightscape is led by a team of over 600 professionals across the Americas, Europe, and Asia, providing a strong competitive edge in the aviation software sector, which further enhances CAE's influence in this market.
- Positive Market Reaction: In pre-market trading, CAE shares were priced at $27.36, up 1.50% from the previous trading day, reflecting investor optimism regarding CAE's strategic adjustments, which may drive future stock performance.
See More
CAE Pursues Strategic Alternatives for Flightscape to Optimize Portfolio
- Strategic Alternatives Exploration: CAE has announced it is pursuing strategic alternatives for its aviation software business, Flightscape, as part of its portfolio optimization efforts aimed at driving long-term shareholder value, reflecting the maturity of Flightscape as a standalone high-growth software business.
- Focus on Core Competencies: By assessing a range of options, including strategic partnerships, investments, or a sale, CAE aims to pave the way for Flightscape's next phase of growth while enhancing its core simulation and training capabilities.
- Increased Market Confidence: CAE's CEO stated that Flightscape, as a strong and differentiated business, may be better positioned for future development through alternative ownership or partnership structures, demonstrating the company's confidence in its potential.
- Global Team Support: As a cloud-native SaaS platform, Flightscape is supported by over 600 professionals dedicated to enhancing the global aviation ecosystem, with sustained customer adoption and investment positioning it favorably in the market.
See More
