Yahoo Finance CGI Group (GIB) is Selected by Swedish Agency for Digitization
CGI Group GIB recently announced its partnership with the Swedish Social Insurance Agency to transform its strategic business through digital systems development. The initial agreement has been confirmed for two years, valued at approximately SEK 500 million, with an extension option for another two years.
Through its digitalization services, CGI will help the agency to modernize its operations and provide a higher level of service to citizens by digitizing core processes and citizen interactions.
CGI’s digital transformation acts as a catalyst in accelerating business outcomes through an end-to-end value chain. It encompasses technology innovation, migration toward cloud, alignment of IT and business priorities, security and environmental sustainability.
It has partnered with over 2,000 government entities across 15 countries, accelerating results through digital transformation programs supported by end-to-end IT and business consulting services.
In February 2023, CGI was selected by Poland to transform its energy sector through the delivery of a new central energy market information system. The system was developed to optimize energy data access and usage, transform the value chain, introduce value-added services and fulfill Poland’s ESG goals.
CGI Group, Inc. Price and Consensus
CGI Group, Inc. price-consensus-chart | CGI Group, Inc. Quote
CGI expanded its partnership with the National Bank of Canada, acquiring the intellectual property of the bank’s in-house financial planning solution. The partnership enables the bank to utilize CGI’s expertise to enhance product development and streamline end-user experience for advisors and investors.
CGI’s Strong Product Portfolio to Score Partnerships
CGI delivers a full range of services, including business consulting, strategic IT and systems integration, managed IT and business process services, and digital transformation to help clients accelerate digitization.
CGI also offers proprietary solutions like CGI Advantage, CGI Trade 360, CGI OpenGrid 360, CGI All Payments and CGI Retail Suite. These solutions transform integrated business applications, payment business solutions, customer experience, network value chains and end-to-end retail support.
This robust product portfolio has helped CGI in expanding partnerships with companies like NetApp NTAP, SAP SAP, and UiPath PATH to expand the former’s customer base.
CGI’s partnership with NetApp focused on helping clients accelerate data-intensive digital transformation in the cloud. The combination of NetApp and CGI’s cloud transformation capabilities provides clients with a wide range of technical platforms, making it easy to manage, access and analyze data.
A global partnership between CGI and SAP strengthened as it added an entire portfolio of SAP solutions under ”RISE with SAP” to CGI’s existing portfolio. This inclusion will provide enhanced services to CGI’s clients who want to accelerate their move to the cloud.
CGI’s collaboration with UiPath offered automation-as-a-service through CGI Accel360, accelerating client’s automation initiatives via simplicity, flexibility and managed services.
What Awaits CGI’s Shares in 2023?
Shares of CGI have risen 12.8% year to date compared with the Zacks Computer and Technology sector’s increase of 20.1%.
The underperformance can be attributed to challenging macroeconomic conditions and raging inflation. The dilutive impact of prior-year acquisitions also hurt CGI’s prospects.
CGI’s business solutions have witnessed higher demand from its clients, which reflects expanding partnerships and increasing IP revenues across geographies. IP revenues, as a percentage of total revenues, increased 21.7% in first-quarter fiscal 2023.
It has also been successful in generating value through investments in end-to-end services to meet client demands and enable full-scale enterprise digitization.
These factors helped CGI record an 11.6% year-over-year revenue increase to $3.45 billion in first-quarter fiscal 2023.
This Zacks Rank #2 (Buy) company reported earnings of $1.60 per share, which increased 7.4% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CGI plans to increase its presence within government agencies to score bigger deals that demand scalability. CGI’s partner base incorporates 35% government. It plans to diversify within its acquisitions by moving toward commercial space to achieve scalability.
The Zacks Consensus Estimate for fiscal second quarter revenues is pegged at $2.65 billion, indicating growth of 2.60% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at $1.27 per share in the past 30 days.
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