CAE Shares Plunge On Mixed Q1 Performance

Loading...
Loading...
  • CAE Inc CAE reported first-quarter FY23 revenue growth of 24% year-over-year to C$933.3 million. Adjusted EPS decreased to C$0.06 from C$0.19 in 1Q22.
  • Sales by segments: Civil Aviation C$480.4 million (+11% Y/Y); Defence and Security C$413.3 million (+43% Y/Y); and Healthcare C$39.6 million (+25% Y/Y).
  • Order intake for the quarter increased by 101% Y/Y to C$1.05 billion, and the total backlog increased by 26% Y/Y to C$10.03 billion.
  • The Civil book-to-sales ratio was 1.09x for the quarter and 1.32x for the last 12 months. The Civil backlog at the end of the quarter was C$5 billion (+19% Y/Y).
  • The gross margin contracted by 345 bps to 24.9%. The operating income declined by 54.3% Y/Y to C$39.4 million, and the margin contracted by 723 bps to 4.2%.
  • Adjusted segment operating income stood at C$60.9 million (-38% Y/Y), and the margin for the quarter was 6.5%, down from 13.1% a year ago.
  • Net cash used in operating activities was C$(162.6) million for the quarter. Free cash flow was negative C$(182.4) million.
  • "We had a mixed performance in the first quarter, with Civil delivering results in line with our view for strong annual growth, while Defense came in well short of our expectations, as a result of discrete program charges and near-term headwinds in this early stage of its multi-year growth journey," said CEO Marc Parent.
  • Outlook: The company expects to deliver mid-20% consolidated adjusted segment operating income growth (mid-30% previously) for FY23, weighted more heavily to the second half of the year.
  • Price Action: CAE shares are trading lower by 14.86% at $21.94 on the last check Wednesday.
Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTrading IdeasBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...