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IT services company CGI boosts its net earnings and revenues in Q2

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MONTREAL - Information technology services company CGI (TSX:GIB.A) says it increased net earnings to $230.9 million, or 73 cents per diluted share, in its second quarter.

That compares with $114.2 million, or 36 cents per diluted share, in the same quarter in 2013. Revenues were up seven per cent to $2.7 billion.

Addjusted net earnings were up 28.6 per cent at $229.6 million, or 72 cents per diluted share, beating analysts' expecatations. That compared with $175.9 million, or 56 cents per diluted share.

Analysts polled by Thomson Reuters had expected 69 cents per share in the second quarter and revenue was forceast to increase 4.5 per cent to $2.64 billion.

CGI has undergone intense scrutiny over its role in building online health insurance exchanges in the United States, including a federal website that faced technical problems.

The Obama administration decided not to renew CGI's contract and instead signed competitor Accenture to a one-year agreement valued at US$90 million.

Founded in 1976, CGI Group Inc. is the fifth-largest independent information technology and business process services firm in the world with more than $10 billion of revenues and about 68,000 employees.


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