The Successful Investor Hotline – Friday, November 15, 2013

Article Excerpt

CGI GROUP INC., $39.61, Toronto symbol GIB.A, hit a new all-time high of $41.47 this week after it reported better-than-expected quarterly results. The company is Canada’s largest provider of computer outsourcing services. It helps its clients automate certain routine functions, like accounting and buying supplies. That makes companies more efficient and lets them focus on their main businesses. On August 20, 2012, CGI completed its $2.7-billion purchase of Logica plc, a U.K.-based firm that offers computer outsourcing services in 36 countries. Logica helped push up CGI’s earnings by 113.7% in its 2013 fourth quarter, which ended September 30, 2013, to $213.6 million from $100.0 million a year earlier. Due to more shares outstanding, earnings per share rose 81.1%, to $0.67 from $0.37. These figures exclude unusual items, such as costs to integrate Logica. On that basis, the latest earnings beat the consensus estimate of $0.62 a share. Revenue gained 52.7%, to $2.5 billion from $1.6 billion. In addition to Logica’s contribution, CGI continues to…