Topic: How To Invest

The Successful Investor Hotline – Friday, February 3, 2017

Article Excerpt

CGI GROUP INC., $63.58, Toronto symbol GIB.A, is Canada’s largest provider of computer-outsourcing services. It helps its clients automate routine functions such as accounting and buying supplies. That makes those companies more efficient and lets them focus on their main businesses. In its fiscal 2017 first quarter, ended December 31, 2016, CGI earned $277.6 million. That’s up 4.8% from $264.9 million a year earlier. Per-share profits jumped 7.1%, to $0.90 from $0.84, on fewer shares outstanding. That matched the consensus estimate. Revenue fell 0.3%, to $2.67 billion from $2.68 billion. However, CGI gets 85% of its revenue from outside of Canada. If you factor out currency exchange rates, revenue in the quarter rose 3.7%. The increase is due to higher volumes in France, new contracts in Canada and gains for the company’s U.K. operations. CGI signed $3.0 billion in contracts during the quarter, down 7.4% from $3.2 billion a year earlier. The decline is mainly due to the timing of those new orders…