The Successful Investor Hotline – Friday, November 12, 2010

Article Excerpt

CGI GROUP INC., $16.68, Toronto symbol GIB.A, is Canada’s largest provider of computer-outsourcing services. The company’s services help its customers automate certain routine functions, such as accounting and buying supplies. That makes its clients more efficient, and lets them focus on their main businesses. This week, the company reported earnings that exceeded the consensus estimate. This caused the stock to gain 8%. On August 17, 2010, CGI paid $923.2 million for Stanley Inc., which provides computer-outsourcing services to military and civilian agencies of the U.S. government. If you exclude costs to integrate these new operations, the company earned $342.0 million in its 2010 fiscal year, which ended September 30, 2010. That’s up 14.0% from $300.0 million a year earlier. The company spent $516.7 million in the latest year on share buybacks. Because of fewer shares outstanding, earnings per share rose 20.6%, to $1.17 from $0.97. That beat the consensus estimate of $1.15 a share. Revenue for the year fell 2.4%, to $3.7…