Fannie Mae, Freddie Mac shares tumble after conservatorship comments
MONTREAL - Wednesday, CGI Inc. (NYSE:GIB) reported better-than-expected first quarter results on Monday, as the IT services provider saw revenue growth and improved profitability. The company’s stock rose 0.40% following the earnings release.
CGI posted adjusted earnings per share of C$1.97 for the quarter ended December 31, 2024, significantly beating analyst estimates of C$1.40. Revenue came in at C$3.79 billion, also surpassing expectations of C$2.68 billion.
The company reported year-over-year revenue growth of 5.1%, or 2.7% in constant currency. Earnings before income taxes increased 12.3% to C$591.7 million, with the margin expanding 100 basis points to 15.6%.
"CGI began fiscal 2025 with positive momentum as our team’s disciplined execution of our plan delivered strong first quarter results, even as some client industries continued to navigate a dynamic business environment," said François Boulanger, President and CEO.
Bookings for the quarter were C$4.16 billion, representing a book-to-bill ratio of 109.8%. The company’s backlog stood at C$29.76 billion, or 2.0 times annual revenue.
CGI generated C$646.4 million in cash from operations during the quarter, representing 17.1% of revenue. The company also repurchased 927,599 shares for C$143.2 million under its share buyback program.
Looking ahead, CGI initiated restructuring actions in Europe, mainly in Germany, to realign its cost structure. The company incurred C$8.3 million in costs this quarter and expects approximately C$42 million more to finalize these actions by Q3 fiscal 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.