(RTTNews) - Canadian IT and business process services provider CGI Group, Inc. (GIB: News , GIB.A.TO) reported Monday a 9.7% year-over-year increase in profit for the fourth quarter, as margins improved, despite revenues edging down. Adjusted earnings per share rose 29% and came in above analysts' expectations by three cents.

The Montreal, Canada-based company reported net earnings of C$82.55 million or C$0.27 per share for the fourth quarter, higher than C$75.26 million or C$0.24 per share in the prior-year quarter.

Excluding the tax benefit of $9.5 million or C$0.06 per share, earnings per share in the year-ago quarter would have been C$0.21, resulting in an improvement of 28.6%.

On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter edged down to C$926.05 million from C$929.20 million in the same quarter last year. Three Wall Street analysts had a consensus revenue estimate of $944.92 million for the quarter. However, revenues declined 1.4% on a constant currency basis.

Adjusted earnings before income tax or EBIT for the fourth quarter increased to $126.1 million or 13.6% of revenue from $105.3 million or 11.3% of revenue in the year-ago quarter.

In the fourth quarter, new contract signings totaled $548.81 million, primarily of new bookings in the financial services as well as the government & healthcare verticals, but sharply down from $982.49 million in the prior-year quarter.
CGI Group, under its normal course issuer bid, bought back 6.15 million shares during the quarter for a total investment of C$65.4 million.

For fiscal 2009, the company reported net earnings of C$315.16 million or C$1.12 per share, up from C$298.27 million or C$0.90 per share in the preceding year. Analysts expected the company to report earnings for $0.96 per share for fiscal 2009.

Revenues for the full year 2009 increased 3.2% to C$3.83 billion from C$3.71 billion in the prior year. The Street was looking for full year 2009 revenues of $3.84 billion. However, revenues declined 1.9% on a constant currency basis.

"We enter fiscal 2010 in an excellent position strategically, operationally and financially. We have a strong balance sheet, including our $1.5 billion largely untapped credit facility. In addition, our sales funnel remains robust and growing, including excellent visibility on a number of significant profitable growth opportunities," Roach added.

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