By Adriano Marchese
CAE, the Canadian flight training company, has reported better-than-expected financial results for the first quarter of fiscal 2024. The company's civil and defense units delivered strong performances, leading to a significant increase in both profit and revenue.
Net income for the period ended June 30 skyrocketed to 65.3 million Canadian dollars ($48.7 million) or C$0.20 per share, compared to C$1.7 million, or C$0.01 per share, in the same period last year.
Adjusted earnings per share also showed notable growth, reaching C$0.24, up from C$0.06 a year ago. This surpassed analyst expectations of C$0.20 per share, as reported by FactSet.
Additionally, CAE's revenue for the quarter rose to C$1.05 billion from C$933.3 million, surpassing analyst expectations of C$1.03 billion.
The company attributes its strong financial performance to the impressive growth across its various segments. The civil unit generated C$540.3 million in revenue, a significant increase from C$480.4 million in the previous year. Similarly, the defense and security segment saw a substantial rise in revenue, climbing to C$471.7 million from C$413.3 million.
Despite being CAE's smallest business, the healthcare segment also experienced growth, with revenue increasing to C$42.4 million from C$39.6 million.
Furthermore, CAE's adjusted backlog for the quarter increased by 12% to C$11.18 billion, demonstrating a strong demand for the company's services. However, the adjusted order intake slipped by 4% to C$1.01 billion.
These results highlight CAE's solid performance and its ability to capitalize on growth opportunities in the aviation industry.
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