Research Desk Line-up: Air Industries Group Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on CAE Inc. (NYSE: CAE), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CAE, following the Company's disclosure of its financial results for the fourth quarter fiscal 2017 (Q4 FY17) and full year 2017 (FY17) on May 31, 2017. The Montreal, Canada-based Company's quarterly EPS before specific items rose 15% y-o-y in the reported quarter; beating market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense Products & Services industry. Pro-TD has currently selected Air Industries Group (NYSE MKT: AIRI) for due-diligence and potential coverage as the Company announced on May 30, 2017, its improved financial operating results for Q1 2017 which ended on March 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Air Industries Group when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CAE; also brushing on AIRI. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=CAE

http://protraderdaily.com/optin/?symbol=AIRI

Earnings Reviewed

During Q4 FY17, CAE's revenue increased 2% to $734.7 million from $722.5 million reported at the end of Q4 FY16. Revenue numbers topped market consensus expectations of $555.47 million.

The civil aviation, defense and security, and healthcare training Company reported earnings from continuing operations of $69.8 million, or $0.25 per diluted share, during Q4 FY17 versus $62.1 million, or $0.23 per diluted share, in the year ago comparable quarter. Net income before specific items for the reported quarter came in at $82.4 million, or $0.31 per diluted share, compared to $72.8 million, or $0.27 per diluted share, in Q4 FY16. The Company's net income for Q4 FY17 outperformed Wall Street's expectations of $0.26 per diluted share.

In FY17, the Company's revenue rose 8% to $2.70 billion from $2.51 billion in the year ago period. Earnings from continuing operations for FY17 stood at $257.1 million, or $0.93 per diluted share, compared to $239.9 million, or $0.89 per diluted share, in FY16. Furthermore, the Company's net income before specific item increased to $278.4 million, or $1.03 per diluted share, in FY17 from $230.5 million, or $0.86 per diluted share, in FY16.

Operating Metrics

During the three months ended on March 31, 2017, the Company's cost of sales fell to $499.7 million from $511.9 million in Q4 FY16. For the reported quarter, selling, general, and administrative expenses came in at $109.5 million compared to $88.9 million in Q4 FY16. Meanwhile, the Company spent $31.3 million on research and development in Q4 FY17 compared to $26.5 in Q4 FY16. Additionally, the Company's operating profit in Q4 FY17 was $100.9 million, or 13.7% of revenues, compared to $99.8 million, or 13.8% of revenues, in the prior year's same quarter.

Segment Performance

During Q4 FY17, Civil Aviation Training Solutions segment's revenue was $417.8 million, up from $393.0 million in Q4 FY16. The segment's operating income rose during Q4 FY17 to $83.8 million, or 20.1% of the segment's revenues, from $75.0 million, or 19.1% of the segment's revenues in the prior year's same quarter.

Defense and Security segment contributed $282.7 million to total revenue during Q4 FY17 compared to $293.7 million in the last year's comparable period. Furthermore, the segment's reported operating income came in at $33.0 million, or 11.7% of segment revenues, in Q4 FY17 versus $38.1 million, or 13.0% of the segment's revenues, in the year ago corresponding quarter.

CAE's Healthcare segment reported revenues $34.2 million in Q4 FY17 compared to $35.8 million in Q4 FY16. Additionally, the segment's operating income for Q4 FY17 was $4.1 million, or 12.0% of revenues, versus $3.5 million, or 9.8% of revenues, in the last year's comparable quarter.

Cash Flow and Balance Sheet

In the FY17, CAE's cash flow from operations totaled $464.3 million compared to $345.8 million in a year ago same period. Furthermore, free cash flow grew 32% in FY17 to $327.9 million from $247.7 million in FY16.

As of March 31, 2017, the Company had cash and cash equivalents balance of $504.7 million compared to $485.6 million at the close of books on March 31, 2016. Additionally, the Company reported long-term debt of $1.20 billion as on March 31, 2017, versus $1.15 billion as on March 31, 2016.

Dividend

In its earnings press release, CAE announced that it will pay a dividend of $0.08 per share effective June 30, 2017, to shareholders of record at the close of business on June 15, 2017.

Stock Performance

On Tuesday, June 20, 2017, the stock closed the trading session at $16.63, slightly down 0.60% from its previous closing price of $16.73. A total volume of 246.68 thousand shares have exchanged hands, which was higher than the 3-month average volume of 209.71 thousand shares. CAE Inc.'s stock price soared 5.72% in the last one month, 17.94% in the past six months, and 32.40% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 19.04%. The stock is trading at a PE ratio of 23.62 and has a dividend yield of 1.44%. The stock currently has a market cap of $4.46 billion.

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