CGI Group Earnings: Here’s Why Investors are Happy Now
CGI Group, Inc. (NYSE:GIB) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 9.43%.
CGI Group, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 70.27% to $0.63 in the quarter versus EPS of $0.37 in the year-earlier quarter.
Revenue: Decreased 99.94% to $580,000 from the year-earlier quarter.
Actual vs. Wall St. Expectations: CGI Group, Inc. reported adjusted EPS income of $0.63 per share. By that measure, the company met the mean analyst estimate of $0.58. It missed the average revenue estimate of $2.54 billion.
Quoting Management: “As we approach the first anniversary of our Logica merger, I am very pleased with the continued strengthening of our business performance and the ongoing progress we are making with respect to implementing our integration plan. We delivered significant margin expansion, accelerating our EPS accretion before acquisition- related and integration costs, above our original 25-30% commitment,” said Michael E. Roach, President and Chief Executive Officer. “Bookings in the quarter were solid, reflecting our focus on business development through increasing client awareness of our expanded and enhanced value-proposition.”
Key Stats (on next page)…