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The Zacks Consensus Estimate for revenues is pegged at $2.59 billion, indicating a decrease of 2.1% from the year-ago fiscal quarter’s reported figure.
The consensus mark for earnings is pegged at $1.31 per share, unchanged over the past 30 days. The consensus estimate indicates growth of 7.4% from the year-ago reported figure.
GIB’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched the same once, the average surprise being 2.59%.
Let’s see how things have shaped up for the upcoming announcement:
Factors Likely to Influence Q1 Results
CGI’s first-quarter results are expected to benefit from an expanding clientele and a strong portfolio of Strategic IT and business consulting services.
The company expects to report an increased number of clients in the to-be-reported quarter.
In the last reported quarter, the company initiated a cost optimization program to expand its real estate portfolio globally and also increase its operational efficiencies like increased use of automation and global delivery, mainly focused on administrative activities.
In the to-be-reported quarter, CGI is expected to have incurred an additional $65 million in expenses for the continuation of the cost optimization program.
In the first quarter of fiscal 2024, the company expects an increase in its managed service bookings as clients are adopting CGI’s end-to-end solutions to reduce their spending while improving their digitization and innovation agendas.
Key Q1 Developments
In the first quarter of fiscal 2024, CGI partnered with Google to help clients benefit from the recent developments in the industry-specific use of generative AI. CGI planned to leverage the Google Cloud Platform to enhance the capabilities of its hyper-automation and decision engine platform, CGI PulseAI solution, which uses AI and machine learning models to deliver high-performance intelligent process automation. The partnership aims to help CGI deliver improved business consultation and managed services in the upcoming quarter.
In November 2023 CGI’s subsidiary, CGI Federal Inc., partnered with All In Solutions LLC to form a joint venture, Adcredo IT Solutions, to serve federal agencies through managed services, AI and advanced data analytics.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
CGI has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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CGI (GIB) Set to Report Q1 Earnings: What's in the Cards?
CGI Group (GIB - Free Report) is scheduled to report its first-quarter fiscal 2024 results on Jan 31.
The Zacks Consensus Estimate for revenues is pegged at $2.59 billion, indicating a decrease of 2.1% from the year-ago fiscal quarter’s reported figure.
The consensus mark for earnings is pegged at $1.31 per share, unchanged over the past 30 days. The consensus estimate indicates growth of 7.4% from the year-ago reported figure.
GIB’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched the same once, the average surprise being 2.59%.
CGI Group, Inc. Price and EPS Surprise
CGI Group, Inc. price-eps-surprise | CGI Group, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement:
Factors Likely to Influence Q1 Results
CGI’s first-quarter results are expected to benefit from an expanding clientele and a strong portfolio of Strategic IT and business consulting services.
The company expects to report an increased number of clients in the to-be-reported quarter.
In the last reported quarter, the company initiated a cost optimization program to expand its real estate portfolio globally and also increase its operational efficiencies like increased use of automation and global delivery, mainly focused on administrative activities.
In the to-be-reported quarter, CGI is expected to have incurred an additional $65 million in expenses for the continuation of the cost optimization program.
In the first quarter of fiscal 2024, the company expects an increase in its managed service bookings as clients are adopting CGI’s end-to-end solutions to reduce their spending while improving their digitization and innovation agendas.
Key Q1 Developments
In the first quarter of fiscal 2024, CGI partnered with Google to help clients benefit from the recent developments in the industry-specific use of generative AI. CGI planned to leverage the Google Cloud Platform to enhance the capabilities of its hyper-automation and decision engine platform, CGI PulseAI solution, which uses AI and machine learning models to deliver high-performance intelligent process automation. The partnership aims to help CGI deliver improved business consultation and managed services in the upcoming quarter.
In November 2023 CGI’s subsidiary, CGI Federal Inc., partnered with All In Solutions LLC to form a joint venture, Adcredo IT Solutions, to serve federal agencies through managed services, AI and advanced data analytics.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
CGI has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Meta Platform (META - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Platform is set to announce fourth-quarter 2023 results on Feb 1. META’s shares have risen 23.7% in the past six months.
Bill Holdings (BILL - Free Report) has an Earnings ESP of +6.17% and a Zacks Rank #3.
Bill Holdings is set to announce second-quarter fiscal 2024 results on Feb 8. BILL’s shares have declined 40.7% in the past six months.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2.
Twilio is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have gained 8.9% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.