CGI Group (TSE: GIB.A), one of the world’s largest IT and business consulting firms, posted a 12.9% rise in EPS in its fourth quarter as revenue edged higher.
Revenue & Earnings
Revenue came in at C$3.09 billion in the three months ended December 31, an increase of 2.4% from C$3.02 billion in the prior-year quarter. Excluding currency effects, revenue increased 6.8% year-over-year.
Meanwhile, profit amounted to C$367.3 million (C$1.49 per diluted share) in Q1 2022, up from C$343.5 million (C$1.32 per diluted share) in Q1 2021.
On an adjusted basis, profit was C$369.4 million (C$1.50 per diluted share), compared with a profit of C$347.2 million (C$1.33 per diluted share) a year earlier.
CGI reported bookings of C$3.6 billion, while the value of its backlog was almost twice its annual revenue at C$23.58 billion.
CEO Commentary
CGI’s President and CEO George D. Schindler said, “CGI is off to a strong start in Fiscal 2022 with accelerating revenue growth, strong bookings, and double-digit EPS accretion. With a net increase of 6,000 employees year-over-year, our plan remains to deliver revenue growth and double-digit EPS accretion for the year.”
Wall Street’s Take
On January 27, TD Securities analyst Daniel Chan kept a Buy rating on GIB.A and a C$130 price target. This implies 18.9% upside potential.
Overall, the consensus on the Street is that GIB.A is a Strong Buy based on nine Buys and one Sell.
The average CGI price target of C$127.58 implies an upside potential of about 16.7% from current levels.
TipRanks’ Smart Score
GIB.A scores a 6 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock returns are likely to be in line with the overall market.
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