RBC Cuts Estimates for CHC Helicopter on Weak European Operations

| About: CHC Helicopter (FLI)

RBC Capital Markets analyst Angela Guo reduced her earnings estimate for CHC Helicopter Corp. (FLI) Thursday ahead of its first quarter earnings on Sept. 13.

Ms. Guo said she now expects an earnings per share for the first quarter of fiscal 2008 of C25¢, down from her previous estimate of C35¢. Her reduced forecast was based on the expectation that European operations underperformed and continue to struggle with fleet expansion issues.

Management also warned the strong Canadian dollar was going to impact its foreign exchange in its fiscal 2008 estimates.

CHC predicts that for each 100 basis point net change in year-over-year average exchange rates will impact annual EBITDA by C$2-million to C$2.5-million, Ms. Guo noted.

She maintained her target price of C$27 on CHC, as well as her “sector perform” rating.

FLI 1-yr chart:

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