Cascade CorporationSeptember 13, 2006 | Comments : 0 Recommended this article: (0)
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
Cascade Corporation is a global leader in the design, manufacture and marketing of materials handling equipment and related technologies, primarily for the lift truck industry.
Over the past six quarters, CAE succeeded in beating the Streets earnings estimate on five occasions. The companys average margin of surprise during this period of time was 32.6%.
Second-quarter fiscal 2007 profits came in at $11.9 million, or 91 cents per share. With analysts expecting 77 cents, CAE topped expectations by 18.2%. Compared to the 84 cents reported in the prior-year period, earnings were up 8.3%. Net sales jumped 3.8% to $119.4 million versus $115.0 million for the second quarter of fiscal 2006.
Earnings per share grew 24.9% over the past five years. CAE increased revenues, expanded gross margins and grew profits over the past four years.
Consensus estimates have experienced a dramatic increase over the past seven days. For this quarter and next quarter, estimates soared 26.4% and 19.4%, respectively. Profit forecasts for fiscal 2007 and fiscal 2008 increased 15.7% and 7.3%, respectively, over the past week.
The Board of Directors has been very active in its efforts to increase shareholder value. On Sep 5, a quarterly cash dividend of 15 cents per share was announced. The dividend will be paid on Oct 20 to shareholders of record as of Oct 3. The company is currently yielding 1.4% and has a five-year average dividend yield of 1.5%. Furthermore, the Board authorized a share repurchase program of up to $80 million over a two-year period.
CAE is currently trading at a valuation of 13.7x trailing 12-month earnings and at 12.5x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.4x trailing 12-month earnings and at 15.5x its current fiscal-year estimated earnings.
The company has a price-to-book ratio of 1.9, compared to 5.1 for the market. CAEs return on equity trumps that of the industry average15% compared to 10%.
Please login to Zacks.com or register to post a comment.