CGI posts strong third quarter, eyes $1 billion in acquisitions this year
CGI, a global technology consulting firm, posted a 7.9% year-over-year (YoY) revenue increase to reach $3.26 billion for the fiscal third quarter ended June 30.
The Montreal-headquartered consultancy also recorded a 13.2% increase in adjusted earnings-per-share (EPS) to reach $1.54. CGI also saw adjusted EBIT increase by 9% to reach $519.9 million in Q3 2022.
Bookings decreased by $224 million YoY to $3.41 billion. The firm’s current backlog stands at $23.24 billion, or 1.8 times annual revenue.
“In the third quarter of fiscal 2022, we continued delivering on our build & buy profitable growth strategy with double digit increases year-over-year in both revenue and EPS," said George Schindler, president and CEO of CGI, in a Wednesday press release. "We are well structured through our portfolio of services and strong balance sheet to help our clients navigate the current economic environment while continuing to drive the growth and profitability of our business."
Schindler told analysts in a Wednesday conference call that the company expects to meet a target of $1 billion in acquisitions this year. He noted a promising deal environment with valuations coming down and lessening competition due to increased cost of capital.
CFO Francois Boulanger in the conference call said CGI has $2.3 billion in cash to draw upon, with access to more if required.
The firm recently acquired Harwell Management, a Paris-based management consultancy focusing on the financial services industry.
CGI provides services in business consulting, business process, systems integration, infrastructure, applications, and managed IT.
The consultancy expanded its headcount by 10,500 in the last year to reach 88,500 employees globally. It has offices across the Americas, Europe, Africa, and Asia-Pacific.
