CAE Inc (NYSE:CAE) saw its stock surge 5.76% in after-hours trading on Tuesday following the release of its fiscal second-quarter results that exceeded analyst expectations. The aviation training specialist demonstrated robust performance, particularly in revenue growth, despite a slight dip in earnings per share.
For the quarter ended September 30, CAE reported adjusted earnings of CA$0.23 (US$0.17) per share, surpassing the analyst consensus estimate of CA$0.20. While this represents a marginal decrease from CA$0.24 per share in the same period last year, it still impressed investors by beating expectations by 15%. The company's revenue for the quarter reached CA$1.24 billion, marking a significant 8.80% increase from CA$1.14 billion a year earlier and comfortably exceeding the analyst forecast of CA$1.14 billion.
The strong financial results, particularly the substantial revenue growth and the company's ability to outperform market expectations, appear to be the primary drivers behind the stock's after-hours rally. Investors seem to be responding positively to CAE's ability to grow its top line in the current economic environment, suggesting confidence in the company's business model and market position in the aviation training sector.
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