CGI Inc Stock Price, News & Analysis

CGI (NYSE: GIB) has been awarded a 10-year contract by the State of Michigan to enhance its SIGMA ERP platform, leveraging CGI Advantage ERP cloud technology. This transformation aims to improve user experience, data-driven decision-making, and reduce total ownership costs. Currently, SIGMA processes over 600,000 payments monthly, totaling $5.2 billion, and supports nearly 50,000 public employees and 200,000 vendors. The agreement emphasizes CGI's expertise in public sector innovation and the ongoing digital transformation of Michigan's financial and procurement systems.

On May 17, 2021, CGI (NYSE: GIB) announced a $60 million ceiling contract with the Department of Interior's Bureau of Indian Affairs (BIA) for enhancements to its Trust Asset Accounting Management System (TAAMS). This five-year contract aims to improve BIA's fiduciary duties to Native Americans, facilitating better information sharing and extended system functionalities. TAAMS manages natural resources across 112 million acres and distributes over $2 billion annually to tribes. This collaboration underscores CGI's long-standing commitment to supporting indigenous communities.

CGI (NYSE: GIB) has been awarded the Solutions for the Information Technology Enterprise (SITE) III IDIQ contract by the Department of Defense's Defense Intelligence Agency (DIA). This contract, lasting 10 years with a ceiling of $12.6 billion, aims to enhance IT mission support across various security domains. The initiative focuses on improving integration, information sharing, and safeguarding through advanced technology management and services. CGI's President, Stephanie Mango, emphasized the company's capability in providing innovative IT solutions vital for national security.

CGI (NYSE: GIB) has been awarded a significant contract by Hansel Ltd., the Finnish Government's procurement unit, to provide data center and hybrid IT services for the public sector. This eight-year framework agreement is valued at approximately 384 million euros (CA $576M) and will benefit various ministries and government organizations. CGI aims to enhance digital public services in Finland, leveraging its extensive experience and advanced technologies in service delivery. The company continues to expand its footprint in the public sector with this strategic partnership.

CGI (NYSE: GIB) has announced its acquisition of Sense Corp, a professional services firm specializing in digital systems integration for government and commercial clients. This move enhances CGI's presence in Texas and St. Louis, adding 300 skilled consultants to its workforce. The transaction aligns with CGI's growth strategy, aiming to expand its consulting services and digital capabilities. The deal is expected to close in early May 2021, marking a significant step in CGI's efforts to meet the increasing demand for IT and business consulting solutions.

CGI reported a strong Q2-F2021 with $3.08 billion in revenue, an 8.4% increase in net earnings to $341.2 million, and diluted EPS of $1.34, which rose 13.6% year-over-year. Bookings jumped 40% to $3.89 billion, resulting in a book-to-bill ratio of 126%. Adjusted EBIT reached $486.3 million, marking a margin improvement to 15.8%. Operating cash flow rose 44.4% to $572.6 million. CGI maintains a strategic focus on growth, backed by a $2.85 billion liquidity position.

CGI (NYSE: GIB) will announce its second quarter fiscal year 2021 results on April 28, 2021, prior to market opening. The press release highlights that the results for the quarter ending March 31, 2021, will be discussed in a conference call at 9:00 a.m. EDT. Key executives, including CEO George D. Schindler and CFO François Boulanger, will lead the call. In fiscal 2020, CGI reported revenues of C$12.16 billion, showcasing its position as a leading IT and business consulting firm.