CORRECTED-Canada's CGI beats Q1 revenue estimates

Corrects Q1 revenue to C$4.08 bln from C$872 mln in key details table; corrects headline and overview section to say revenue beat estimates

Overview

• Canada IT consulting firm's Q1 revenue rose 7.7%, beating analyst expectations

• Adjusted EPS for Q1 met analyst expectations

• Adjusted net income for Q1 beat analyst estimates

Outlook

• Bookings of C$4.47 billion and a backlog of C$31.32 billion indicate strong demand and future growth potential

Result Drivers

• MANAGED SERVICES - Strong performance in managed services with a book-to-bill ratio of 117% drove results, according to CEO François Boulanger

• CASH GENERATION - Record-high cash from operations of C$872 million was achieved through disciplined management and quality delivery

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for CGI Inc is C$148.50, about 23.8% above its January 27 closing price of C$119.95

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nCNWpSlmHa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)