This IT company beat earnings estimates by two cents last quarter and 14 analysts have increased their forecasts in the past 30 days. The shares recently rose past their 50-day moving average—a bullish indicator.
CGI Group (GIB)
From Internet Wealth Builder
CGI Group (GIB) is the fifth largest independent information technology and business process services firm in the world. It employs about 65,000 professionals in offices and delivery centers across the Americas, Europe, and the Asia Pacific region. The company offers a range of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management, as well as many proprietary solutions.
GIB is managed through the following seven segments: the U.S., Nordics, Canada, France (including Luxembourg and Morocco), the United Kingdom, Eastern, Central and Southern Europe (ECS, primarily Netherlands and Germany), and Asia Pacific (including Australia, India, and the Philippines).
In fiscal 2015 (CGI has a year-end of Sept. 30), the company recorded $11.6 billion in bookings. Of that, less than 30% came from Canada. About 21% of the business originated in the U.S. ($2.5 billion), while about 36% ($4.2 billion) came from continental Europe.
RBC describes the foreign exchange gains as a “strong tailwind” that will enable the company to achieve or exceed its target for double-digits earnings per share growth in 2016. CGI earned $3.13 in 2015 and the brokerage firm is projecting $3.45 in the current fiscal year and $3.78 in 2017. RBC has a price target of $65 on the stock.
Gordon Pape, Internet Wealth Builder, www.buildingwealth.ca, 1-888-287-8229, January 25, 2016