The 10-second takeaway
For the quarter ended Dec. 31 (Q1), CGI Group missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted.
Margins dropped across the board.
CGI Group reported revenue of $1.02 billion. The 15 analysts polled by S&P Capital IQ foresaw a top line of $1.07 billion. Sales were 9.9% lower than the prior-year quarter's $1.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.39. The three earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.39 for Q1 were 13% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 13.5%, 520 basis points worse than the prior-year quarter. Operating margin was 13.5%, 70 basis points worse than the prior-year quarter. Net margin was 10.3%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $4.43 billion. The average EPS estimate is $1.66.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 226 members out of 234 rating the stock outperform, and eight members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give CGI Group a green thumbs-up, and zero give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CGI Group is hold, with an average price target of $21.74.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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