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.
Is CGI Group playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add CGI Group to My Watchlist.
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.