November 9, 2009 / 12:25 PM / 8 years ago

UPDATE 2-CGI Group posts stronger profit, but revenue down

* Q4 EPS C$0.27 vs analysts’ estimate C$0.24

* New contracts help profit, but revenue down (Adds details, comments, stock price)

TORONTO, Nov 9 (Reuters) - Outsourcing company CGI Group Inc GIBa.TO reported a stronger quarterly profit on Monday, but its revenue came in lower than analysts had expected and its shares fell.

CGI, Canada’s biggest computer consulting company, said it earned C$82.6 million ($77.9 million), or 27 Canadian cents a share, compared with C$75.3 million, or 24 Canadian cents a share, a year earlier.

Revenue fell to C$926.1 million from C$929.2 million.

Analysts on average had expected the company to earn 24 Canadian cents a share on revenue of C$955.3 million, according to Thomson Reuters I/B/E/S.

The company’s shares fell 26 Canadian cents to C$12.89 on the Toronto Stock Exchange on Monday morning.

Chief Executive Michael Roach told analysts in a conference call that CGI’s industry is going through a “consolidation spurt” and that the company is confident it will participate.

“We continue to work our target list and have discussions1 and remain optimistic that there’s deals for us to do that are accretive to GAAP earnings per share in the first year,” he said.

In the fourth quarter, new contract signings totaled C$549 million, composed primarily of new bookings in the financial services industry as well as in government and health care.

“Bookings for the quarter reflect some anticipated signings that have been moved into fiscal 2010,” Roach said.

$1=$1.06 Canadian Reporting by Wojtek Dabrowski and by Isheeta Sanghi in Bangalore; Editing by Peter Galloway

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