CGI Surges to 13-Year High on Profit Beat: Montreal Mover
CGI Group Inc. (GIB/A) climbed to its highest level since 2000 after the Canadian supplier of technology to retailers and banks reported profit that beat analysts’ estimates.
The stock rose as much as 16 percent, its biggest intraday gain since May 31, and was trading at C$30.85 at noon in Toronto. Before today, CGI had climbed 18 percent this year.
Profit excluding costs related to its 2012 purchase of Logica Plc was 56 Canadian cents (56 cents) compared with the average estimate of 49 cents in a Bloomberg survey of analysts. Revenue climbed 137 percent to C$2.53 billion, helped by the Logica acquisition, which gives it new revenue streams from Europe.
CGI, based in Montreal, bought Logica to tap demand from companies looking to invest in IT services to boost their efficiency amid sluggish growth across the continent.
“I am very pleased with our overall performance and with the excellent progress we have achieved in restructuring and transforming our European and Asia Pacific operations,” Chief Executive Officer Michael Roach said in a statement.
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