Topic: How To Invest

The Successful Investor Hotline – Friday, November 10, 2017

Article Excerpt

CGI GROUP INC., $67.65, 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 companies more efficient and lets them focus on their main businesses. In its fiscal 2017 fourth quarter, ended September 30, 2017, CGI’s earnings improved 0.5%, to $275.7 million from $274.4 million a year earlier. Per-share profits jumped 4.5%, to $0.93 from $0.89, on fewer shares outstanding. However, that missed the consensus estimate of $0.94. Revenue gained 1.0%, to $2.61 billion from $2.58 billion. That CGI gets 90% of its revenue from outside of Canada. If you factor out currency exchange rates, revenue in the quarter rose 2.5%. That gain is mainly due to new contracts and renewals in the U.S., Canada, France and Asia. CGI signed $2.91 billion in contracts during the quarter, up 1.9% from $2.86 billion a year earlier. Even so, the company continues to do a good job replacing older…