Canadian Manufacturing

CGI Inc. reports softer third quarter with earnings down 16%

Revenues slipped 2.2% for the Montreal-based business and technology consulting firm

July 29, 2020  The Canadian Press

MONTREAL — CGI Inc. is reporting a softer fiscal third quarter with earnings dropping 16% on lower revenues.

The Montreal-based business and technology consulting firm says it earned $260.9 million or $1 per share for the three months ended June 30.

That compared with $309.4 million or $1.12 per share a year earlier.

Excluding one-time costs, including $47.5 million for acquisitions and restructuring, adjusted net income was $308.4 million or $1.18 per share, compared with $337.2 million or $1.22 per share in the third quarter of 2019.

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Revenues slipped 2.2% to $3.05 billion from $3.12 billion in the year-ago quarter.

CGI was expected to post $1.14 per share in adjusted profits on $2.98 billion of revenues, according to financial markets data firm Refinitiv.

“Looking ahead, we believe market and business conditions for our end-to-end services will gradually improve throughout the rest of this year, and we see expanding opportunities for profitable growth through both build and buy,” said CEO George Schindler.