Q: My Guys
Your thoughts on CGI's earnings and outlook. Seems to be support with stock buybacks etc. Time to nibble away at it.
Thanks
Stuart
Your thoughts on CGI's earnings and outlook. Seems to be support with stock buybacks etc. Time to nibble away at it.
Thanks
Stuart
5i Research Answer:
EPS of $2.12 beat estimates of $2.11; revenue of $4.07B matched estimates. EBITDA of $804M also matched. Book to bill was positive at 1.10x, and there was a rebound in integration and consulting business. Revenue rose 7.7%, EPS rose 6%, backlog rose 5.2% to $31.32B. The stock has been weak, but considering its potential and stability we would be comfortable nibbling away at it at only 12X earnings right now. The large backlog does provide nice visibility, as it represents two full years of revenue at the current rate.