CGI Inc Stock Price, News & Analysis

CGI (NYSE: GIB) has expanded its strategic partnership with Fennia Mutual Insurance Company, assuming responsibility for a majority of its IT services in a contract valued at approximately 48 million euros. The agreement involves managing application development and maintenance, along with end-user support. Fennia aims to enhance its digital transformation, improving service availability and compliance. CGI's President emphasized the collaboration will bolster Fennia's modernization efforts and reinforce CGI's market leadership in IT services for the insurance sector.

CGI has been selected by Ginnie Mae to implement a Digital Asset Management Solution (DAMS) through a blanket purchase agreement covering one base year and four options. This initiative aims to support Ginnie Mae's digital transformation by enhancing document, record, and content management to improve accessibility and user experience. Following CGI's previous work modernizing Ginnie Mae's securitization platform, this project will also strengthen security and data privacy compliance. Ginnie Mae manages over $2 trillion in assets.

CGI has extended its contract with City of Edinburgh Council for six more years, valued at $175 million CAD. This partnership aims to transform Edinburgh into one of the world's "smartest" cities by establishing a Smart City Operations Center. CGI will leverage AI, IoT, and analytics to enhance digital services for citizens. Planned improvements include advanced networks for schools and efforts to achieve carbon neutrality by 2030. This extension builds on CGI's successful five-year relationship with the Council, promising further efficiencies and savings.

CGI (TSX: GIB.A) (NYSE: GIB) released a white paper titled "Charting the path forward with resilience and adaptability," highlighting insights from over 1,400 executives on navigating the economic challenges posed by COVID-19. The paper outlines three critical organizational capabilities: Mastering business agility, where only 18% report high agility; Rethinking the technology supply chain focusing on modernization and automation; and Enabling the future of work, with 88% not seeing enterprise digital strategy results. CGI aims to support clients through the phases of crisis recovery.

Q3-F2020 Performance Summary

CGI reported a revenue of $3.05 billion for Q3-F2020, reflecting a 2.2% decline year-over-year. The adjusted EBIT was $448 million, down 5.5%, and the adjusted EBIT margin decreased to 14.7%. Net earnings were $260.9 million, with a diluted EPS of $1.00. Despite these drops, cash provided by operating activities surged to $584.8 million, marking a 19.2% revenue share. The backlog remains strong at $22.30 billion.

CGI will release its third quarter fiscal year 2020 results on July 29, 2020, before market opening. A conference call with management, including George D. Schindler, CEO, and François Boulanger, CFO, will take place at 9:00 a.m. (EDT) to discuss these results. The company reported C$12.1 billion in revenue for fiscal 2019 and operates with a strong global workforce of 78,000 professionals.

CGI (TSX: GIB.A, NYSE: GIB) will announce its third quarter fiscal results for 2020 on July 29, 2020, before market opening. A conference call is scheduled for 9:00 a.m. EDT, featuring CEO George D. Schindler and CFO François Boulanger discussing financial insights and taking questions. CGI is a leading IT and business consulting firm, reported revenues of C$12.1 billion in Fiscal 2019. Investors can access the call via a live webcast on the company’s IR section of its website.

CGI (NYSE: GIB) has secured a €49 million contract with LocalTapiola, a leading Finnish insurance company, to enhance its digitization efforts as part of the Toivo modernization project. This agreement marks a renewal of their long-term partnership, focusing on improving customer experiences and optimizing the implementation of digital services. CGI will introduce new delivery models to bolster productivity and cost control. The collaboration underlines CGI's commitment to agile development and innovative service delivery, further solidifying its role in LocalTapiola's IT operations since 2013.

On June 17, 2020, CGI (NYSE: GIB) announced a contract worth EUR 49 million (approx. C$74.5 million) with LocalTapiola, a major Finnish insurance firm. This agreement aims to enhance LocalTapiola's modernization efforts by providing digitization services as part of the Toivo project. CGI will implement new delivery models for improved productivity and cost control, utilizing a hybrid development model to manage numerous projects effectively. CGI has been LocalTapiola's IT partner since 2013, supporting operations globally.