(Reuters) – CAE Inc’s U.S.-listed shares rose over 12% on Thursday after it posted second-quarter revenue and profit above analyst estimates, benefiting from a surge in demand for flight simulators at its civil aviation and defense units.
Shares of the world’s largest civil aviation training company were trading at $20.36 in early trade, amid a rise in broader markets on hopes that the Federal Reserve might scale down the size of its future interest rate hikes. [.N]
Sales at CAE’s Civil Aviation unit, which serves aeroplane makers including Canada’s Bombardier Inc, jumped 40% on strong demand from airplane makers and carriers ramping up their training spend in the quarter to capitalize on travel demand.
“Our outlook for Civil remains highly positive, with its industry leading positioning expected to enable us to grow significantly through the market recovery and beyond.” CAE Chief Executive Officer Marc Parent said.
The company posted revenue of C$993.2 million ($743.64 million) for the quarter ended Sept. 30, ahead of Refinitiv IBES estimates of about C$949 million.
On an adjusted basis, it earned 19 Canadian cents per share, compared to analyst expectations of 17 cents.
($1 = 1.3356 Canadian dollars)
(Reporting by Nathan Gomes in Bengaluru; Editing by Shailesh Kuber)