On May 21, 2024, after market hours, CAE issued a press release entitled “CAE announces re-baselining of its Defense business, Defense impairments, accelerated risk recognition on Legacy Contracts and appointment of Nick Leontidis as COO”. In that press release, the Company revealed that “[i]n the fourth quarter of fiscal 2024, CAE has recorded a $568.0 million non-case impairment of Defense goodwill and $90.3 million in unfavorable Defense contract profit adjustments as a result of accelerated risk recognition on the Legacy Contracts” and also “recorded a $35.7 million impairment of related technology and other non-financial assets which are principally related to the Legacy Contracts.” The Company also revealed that, having re-baselined the Defense business and “[t]aking management’s current preliminary expectations for the fiscal year into account, the previously indicated three-year EPS growth target of mid-20% compound annual growth has been adjusted to the low- to mid-teens-percentage range.”
On this news, CAE’s common stock price dropped more than 5% from $19.83 per share at the close of trading on May 21, 2024 to $18.80 per share at the close of trading on May 22, 2024.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Attorney Advertising. Prior results do not guarantee a similar outcome.
