CGI Group (GIB) Q1 Earnings and Revenues Beat Estimates

Core Viewpoint - CGI Group reported quarterly earnings of $1.41 per share, exceeding the Zacks Consensus Estimate of $1.39 per share, and showing an increase from $1.34 per share a year ago [1][2] Financial Performance - The company achieved revenues of $2.71 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.07%, compared to $2.65 billion in the same quarter last year [3] - CGI has surpassed consensus EPS estimates three times over the last four quarters [2][3] Stock Performance - CGI shares have increased approximately 4.7% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [4] - The stock's immediate price movement will depend on management's commentary during the earnings call [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $2.79 billion, and for the current fiscal year, it is $5.85 on revenues of $11.09 billion [8] - The estimate revisions trend for CGI is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Computer - Services industry, to which CGI belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact CGI's stock performance [6]