CGI Group FY2025 EPS Boosted by Raymond James Financial

Key Points

• Analysts at Raymond James Financial have raised their FY2025 EPS estimates for CGI Group to $6.05, slightly above the previous forecast of $6.03 and higher than the consensus estimate of $5.79.
• CGI Group reported quarterly earnings of $1.52 per share, exceeding analysts' expectations by $0.01, despite revenue falling short at $3 billion against estimates of $4.01 billion.
• The company declared a quarterly dividend of $0.1086 per share, an increase from the prior dividend of $0.11, which reflects a yield of 0.5% and a payout ratio of 7.83%.

CGI Group, Inc. (NYSE:GIB - Free Report) TSE: GIB.A - Equities researchers at Raymond James Financial raised their FY2025 earnings estimates for shares of CGI Group in a note issued to investors on Wednesday, July 30th. Raymond James Financial analyst S. Li now anticipates that the technology company will post earnings of $6.05 per share for the year, up from their prior estimate of $6.03. The consensus estimate for CGI Group's current full-year earnings is $5.79 per share.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last released its earnings results on Wednesday, July 30th. The technology company reported $1.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.51 by $0.01. CGI Group had a return on equity of 18.53% and a net margin of 11.01%. The business had revenue of $3 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same period last year, the business posted $1.91 earnings per share. The business's revenue for the quarter was up 11.4% on a year-over-year basis.

A number of other analysts have also weighed in on the stock. UBS Group decreased their target price on shares of CGI Group from $112.00 to $105.00 and set a "neutral" rating on the stock in a report on Thursday. Royal Bank Of Canada dropped their price objective on CGI Group from $185.00 to $175.00 and set an "outperform" rating for the company in a research note on Thursday. Two research analysts have rated the stock with a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $148.25.

CGI Group Stock Performance

GIB stock traded down $1.06 during midday trading on Friday, reaching $95.37. 324,095 shares of the company's stock traded hands, compared to its average volume of 296,347. The firm has a market capitalization of $21.26 billion, a PE ratio of 17.63, a price-to-earnings-growth ratio of 1.76 and a beta of 0.72. The company has a 50-day moving average price of $104.29 and a two-hundred day moving average price of $106.39. CGI Group has a 52 week low of $92.85 and a 52 week high of $122.79. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.92 and a current ratio of 1.27.

CGI Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Investors of record on Friday, August 15th will be issued a dividend of $0.1086 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $0.43 annualized dividend and a dividend yield of 0.5%. This is an increase from CGI Group's previous quarterly dividend of $0.11. CGI Group's payout ratio is 7.95%.

Hedge Funds Weigh In On CGI Group

A number of large investors have recently added to or reduced their stakes in GIB. Federation des caisses Desjardins du Quebec grew its stake in shares of CGI Group by 22.5% during the first quarter. Federation des caisses Desjardins du Quebec now owns 4,933,984 shares of the technology company's stock valued at $491,725,000 after buying an additional 907,876 shares during the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp lifted its stake in shares of CGI Group by 1,190.6% in the 4th quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 845,916 shares of the technology company's stock valued at $92,438,000 after acquiring an additional 780,370 shares during the last quarter. Royal Bank of Canada lifted its stake in shares of CGI Group by 10.1% in the 1st quarter. Royal Bank of Canada now owns 8,151,753 shares of the technology company's stock valued at $813,792,000 after acquiring an additional 747,918 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of CGI Group by 275.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 898,276 shares of the technology company's stock valued at $89,675,000 after acquiring an additional 658,925 shares during the last quarter. Finally, Bank of Montreal Can lifted its stake in shares of CGI Group by 17.3% in the 4th quarter. Bank of Montreal Can now owns 3,843,289 shares of the technology company's stock valued at $419,976,000 after acquiring an additional 567,868 shares during the last quarter. Hedge funds and other institutional investors own 66.68% of the company's stock.

CGI Group Company Profile

CGI Inc, together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services.