CAE Beats EPS Estimates by $0.14, But Revenue Slips 2.6%

CAE posted $0.33 in quarterly EPS (earnings per share) on Wednesday, beating the analysts' consensus of $0.19 by $0.14, according to Briefing.com. The beat came on a shrinking top line — revenue fell 2.6% versus the same quarter last year.

The aerospace company, dual-listed on the NYSE and Toronto Stock Exchange under the ticker CAE, earned $0.23 per share in the year-ago quarter, so profits grew about 43% year over year on a per-share basis. Profitability metrics held moderate: a net margin (profit as a share of revenue) of 6.36% and return on equity (profit generated on shareholders' capital) of 7.45%.

Management also updated its fiscal-year 2027 guidance to EPS of $0.92 to $0.97. The message is simple: costs are being managed well enough to expand earnings even while sales drift lower.

How did the market react?

Not with enthusiasm. NYSE-listed shares fell $0.34, or 1.2%, to $27.39 on Wednesday. Trading volume reached 654,213 shares, below the average of 765,867 — so the selloff wasn't heavy, just directionally negative.

The technical picture frames the move:

• 50-day moving average: $24.68
• 200-day moving average: $26.40
• 12-month range: $22.76 to $34.24

At $27.39, the stock sits above both moving averages but well off its 52-week high. The balance sheet adds context: a quick ratio (near-cash assets over short-term liabilities) of 0.77, a current ratio of 0.96, and a debt-to-equity ratio of 0.55. Valuation runs rich — a market cap of $8.76 billion, a price-to-earnings ratio of 38.58, a PEG ratio (P/E adjusted for growth) of 2.85, and a beta (sensitivity to market swings) of 1.06.

What are analysts saying?

The research desk is split, and recent notes trend cautious:

• Barclays assumed coverage on October 9 with an "overweight" rating and a $38.00 price target — the street's high-water mark of optimism.
• Morgan Stanley downgraded the stock from "equal weight" to "underweight" on July 15.
• Jefferies cut its price objective from $28.00 to $26.00 on October 13, keeping a "hold" rating.
• Weiss Ratings moved from "hold (c)" to "hold (c-)" on July 23.
• Scotiabank restated an "outperform" rating on October 27.

In aggregate, seven analysts rate the stock a Buy, three a Hold and one a Sell, per MarketBeat. That lands at a consensus of "Moderate Buy" with an average price target of $33.33 — roughly 22% above Wednesday's close.

Why the company matters

CAE Inc., founded in 1947 and headquartered in Montreal, builds simulation and training technology for civil aviation and defense. Its flight simulators, training devices and pilot and crew training services serve airlines, business aviation operators and aircraft manufacturers worldwide. In plain terms, this is the company that trains a large share of the world's pilots — and its profit machine is running faster than its sales line.