Canadian IT and business process services provider CGI Group, Inc. (GIB, 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.
GIB closed Friday's regular trading session at $12.22, up $0.29 on a volume of 0.22 million shares, higher than the three-month average volume of 0.17 million shares. In the past 52-week period, the stock has been trading in a range of $6.65 to $13.47.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.