MONTREAL - CAE Inc . (NYSE: NYSE:CAE) (TSX: CAE), a leader in aviation training, announced today that Sonya Branco, its Executive Vice President, Finance and Chief Financial Officer, will resign at the end of August to explore new opportunities. Constantino Malatesta, currently Chief Accounting Officer, will take over as interim CFO.
Branco has been with CAE since 2008 and assumed the CFO role in 2016. Her tenure saw the company's transformation into the world's largest civil aviation training provider. Her strategic financial management facilitated over 20 acquisitions and helped CAE maintain a strong financial profile through the COVID pandemic.
Marc Parent, CAE's President and CEO, acknowledged Branco's significant contributions to the company's growth and milestones. He commended her leadership and mentorship, which have left a lasting impact on the company.
Malatesta, who has been with CAE since 2006, brings extensive finance experience to his new role as interim CFO. He has previously served as Vice President, Finance and Corporate Controller, and has been closely involved with CAE's financial operations.
The search for a permanent CFO is underway, considering both internal and external candidates. The company emphasized that Malatesta's appointment ensures continuity and stability during this transition.
This announcement is based on a press release statement from CAE Inc.
In other recent news, CAE Inc. has reported a 13% year-over-year increase in adjusted backlog and $1.6 billion in orders for the quarter. The company's Civil segment saw a 6% revenue increase in Q4, marking a positive development despite challenges in the Defense segment.
In addition, CAE secured a significant contract worth at least $250 million from General Atomics Aeronautical Systems, involving comprehensive support for the MQ-9B SkyGuardian Remotely Piloted Aircraft Systems acquired by the Canadian government.
BMO Capital Markets lowered its price target for CAE shares to Cdn$33.00 from Cdn$34.00, citing anticipated changes in the civil aviation market due to ongoing supply-chain issues. Nevertheless, the firm maintained an Outperform rating for CAE, indicating a positive outlook for the company's performance. This decision was influenced by the strong order intake for CAE and the expected stability in the Defense segment's margins.
These are recent developments that investors should be aware of. The company's focus on network optimization and robust order intake are key factors that support the Outperform rating despite the slight reduction in the price target. Despite ongoing underperformance in the Defense segment, the firm believes the Civil segment's strength will continue to bolster CAE's overall performance.
InvestingPro Insights
Amidst the executive transition at CAE Inc., the company's financial outlook and market performance remain a focal point for investors. According to InvestingPro, CAE's net income is anticipated to grow this year, which could signal a positive trajectory following a period where the company was not profitable over the last twelve months. This aligns with the optimism expressed by analysts who predict that CAE will return to profitability within the year.
InvestingPro data underscores CAE's current market position, with a market capitalization of $5.64 billion and a Price to Earnings (P/E) ratio of -25.66, reflecting investor sentiment about past earnings challenges.
Still, the forward P/E ratio is adjusted to 25.28, based on the last twelve months as of Q4 2024, suggesting that market expectations are adjusting for anticipated growth. The company's stock has experienced significant volatility, currently trading near its 52-week low, which may present a buying opportunity for long-term investors considering the potential upswing forecasted by analysts.
For those seeking deeper insights, InvestingPro offers additional metrics and tips on CAE's financial health and future outlook. Subscribers can access a comprehensive analysis, including seven more InvestingPro Tips for CAE, by visiting https://www.investing.com/pro/CAE. To enhance your investment strategy, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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