CGI's (GIB) fiscal Q3 revenue was aided by favorable foreign exchange movements that also lifted adjusted earnings slightly above estimates, RBC Capital Markets said.
While constant currency organic growth remained slightly negative at -0.5%, it improved from Q2, with growth in Europe and the US exceeding expectations and the managed services pipeline showing further strength, according to the note Wednesday.
The firm said recent acquisitions contributed to top-line growth but diluted margins year over year. CGI expects margins to expand as integration and restructuring efforts progress.
"Despite negative organic growth, Q3 adjusted EPS rose 10% year-over-year, primarily due to the contribution from acquisitions," the firm added.
The firm raised its adjusted EPS estimates to CA$8.29 ($5.98) from CA$8.22 for fiscal 2025 and CA$9.12 from CA$8.96 for 2026, and now forecasts revenue of CA$16.0 billion from CA$15.9 billion for fiscal 2025 and CA$17.0 billion from CA$16.7 billion for 2026, citing foreign exchange tailwinds, improved organic growth, and better acquisition contributions.
RBC maintained an outperform rating on the stock and cut its price target to CA$175 from CA$185.
Price: 97.37, Change: +0.30, Percent Change: +0.31
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。