CGI Group GIB reported first-quarter fiscal 2024 non-GAAP earnings of $1.34 per share, beating the Zacks Consensus Estimate by 2.29% and increasing 9.8% year over year.

In domestic currency (C$), the company reported non-GAAP earnings of $1.83 per share, which increased 10.2% year over year.

Revenues of $2.65 billion beat the consensus mark by 2.02%. At constant currency (cc), the top line increased by 1.5%.

In domestic currency (C$), revenues amounted to $3.6 billion, increasing by 4.4% year over year.

CGI Group, Inc. Price, Consensus and EPS Surprise

 

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Geographically, Asia Pacific increased 7%; and Western and Southern Europe increased 4%. However, Canada revenues dropped 1.4%, while U.S. commercial and state government declined 1.2%.

Top Line Details

Managed IT and Business Process Services contributed 55% to revenues. The upside in CGI Group’s revenues was supported by growing demand among customers and lower operating expenses.

CGI’s product pipeline reflected an increasing demand for managed services as the total value of opportunities increased by 40% sequentially, which contributed to CGI’s first-quarter revenues.

Business, consulting, strategic IT consulting and systems integration services contributed 45% to revenues. The rising demand for CGI Group’s offerings was evident from the company’s rising customer base.

Within the government sector, CGI experienced significant growth of 7.5% at cc, solidifying its position as the company's largest vertical market, contributing 36% to fiscal first-quarter revenues.

CGI continued to invest in its business, including $85 million in AI investments. Strategic partnerships, such as the global partnership with Korber in the pharma and life sciences sector, contribute to CGI's growth strategy.

Operating Details

CGI Group reported adjusted EBIT of $584.2 million, which was up 5.4% year over year. Adjusted EBIT margin improved 10 basis points year over year to 16.2%.

In the first quarter, bookings were $4.19 billion, which represented a book-to-bill ratio of 116.2%. As of Dec 31, 2023, CGI Group’s backlog stood at $26.57 billion.

Balance Sheet and Cash Flow

CGI Group had cash and cash equivalent and short-term investments of $1.15 billion compared with $1.57 billion as of Sep 30, 2023.

As of Dec 31, 2023, CGI Group had a total debt of $2.37 billion compared with $3.10 billion as of Sep 30, 2023.

It generated $577.2 million in cash from operations compared with $628.7 million in the previous quarter.