CGI Group posts higher profits, sales, stock hits new 52-week high

MONTREAL – Shares of CGI Group Inc. (TSX:GIB.A) hit their highest price in more than a year Wednesday after the Montreal-based information technology company posted a $178.2 million profit and higher sales due to internal growth and an acquisition.

The stock traded as high as $36.36 at the Toronto Stock Exchange, which was above the previous 52-week high of $33.11 and the highest in least five years.

The earnings amounted to 56 cents per share, and were up from $87.2 million or 33 cents per share in the same period last year, prior to the Montreal-based company’s $2.7-billion acquisition of U.K-based Logica.

The third quarter profit included integration costs of $53.5 million and a one-time tax benefit of $14.9 million. Before those costs, net earnings were $200.4 million, or 63 cents per diluted share, up from $93 million a year earlier.

Revenue was up to $2.57 billion from $1.06 billion as booking rose 86 per cent.

The company says it generated $133.2 million in cash from operating activities during the quarter, and booked $2.8 billion in new contract wins, extensions and renewals.

At the end of June, CGI’s backlog of signed orders stood at $18.7 billion, up $5.1 billion compared with the same period last year and up $728 million from the previous quarter.

“As we approach the first anniversary of our Logica merger, I am very pleased with the continued strengthening of our business performance and the ongoing progress we are making with respect to implementing our integration plan,” CEO Michael Roach said in a statement.

“We delivered significant margin expansion, accelerating our EPS accretion before acquisition- related and integration costs, above our original 25-30 per cent commitment.”