Topic: How To Invest

The Successful Investor Hotline – Friday, November 9, 2018

Article Excerpt

CGI GROUP INC., $81.68, 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 firms more efficient and lets them focus on their main businesses. In its fiscal 2018 fourth quarter, ended September 30, 2018, CGI’s earnings improved 12.4%, to $309.9 million from $275.7 million a year earlier. Per-share profits rose 17.2%, to $1.09 from $0.93, on fewer shares outstanding. Those figures exclude costs related to a restructuring plan, which cut jobs and closed unneeded offices. In all, CGI spent $189.0 million on severance payments and other related costs. The company has yet to reveal how much savings will result from the plan, but expects to see most of the benefits in fiscal 2019. If you disregard all unusual items, the latest earnings beat the consensus estimate of $1.07 a share. Revenue in the quarter gained 7.3%, to $2.80 billion from $2.61 billion. CGI gets 85% of its…

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