(MENAFN- ProactiveInvestors) CAE (TSE:CAE) an aviation training company reported a better-than-expected profit in its fiscal third quarter as revenue grew 11 percent helped by strong demand for simulators.
Net income rose to C$53 million or C$0.20 per share for the three months ended December 31 from C$46.1 million or C$0.18 per share a year earlier the Montreal Quebec-based company said in a statement today.
That beat the C$0.19 average of 8 analysts’ estimates compiled by Capital IQ.
Revenue increased 11 percent to C$559.1 million year-over-year topping Bay Street’s consensus of C$554.4 million.
CAE benefited from strong demand for simulators and continued outsourcing of pilot training while the defence segment received orders on new and existing aircraft programs.
The total order backlog reached $5 billion.
The civil aviation segment's operating income increased 19 per cent to $53.8 million on $322 million of revenues from the sale of 18 full-flight simulators and new training contracts.
Defence segment profits slipped to $28.6 million from $31 million despite a nearly seven per cent increase in revenues to $215.7 million.
Health-care simulation segment earnings more than doubled to $500000 on $21.3 million of revenues.
“Third-quarter performance gives confidence to our outlook for a stronger second half of the fiscal year" chief executive officer Marc Parent said in the statement.
CAE will pay a dividend of $0.07 per share unchanged from the previous quarter. The stock is payable March 31to shareholders of record at the close of business on March 13.
Shares fell 2.7 percent to C$15.80 at 2:34 p.m. in Toronto after rising as high as C$16.53.
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