Company News

BUZZ-CAE Inc: Soars to a record high on Q4 results beat, FY20 outlook

** Shares of the aviation training provider rise as much as 7.3% to a record high of C$34.33; stock top percentage gainer on the Toronto Stock Exchange 300 composite index

** Co reports Q4 EPS of 48 Canadian cents vs analysts’ est of 43 Canadian cents; Revenue of C$1.02 bln vs est of C$945.19 mln -Refintiv data

** Revenue from its biggest unit, civil aviation training solutions, rose 50% to C$593.4 mln, while that from its defense and security unit rose 34% to C$387.9 mln

** Co sees civil unit’s operating income in fiscal 2020 to grow in the upper 20% range on continued strong demand for its training solutions and the integration of recently acquired Bombardier BAT business, among others

** In its defense unit, co expects mid-to high-single-digit percentage growth in operating income, and expects smallest unit healthcare to achieve double-digit growth

** CAE’s encouraging FY20 outlook, which is above our expectations, is supported by the strong bookings reported in FY19 - Desjardins analyst Benoit Poirier

** Including today’s gains, stock up ~36% YTD (Reporting by Shanti S Nair in Bengaluru)