CGI (GIB.A) & Open Text (OTEX): 2 TSX tech stocks with rising profits

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CGI (GIB.A) & Open Text (OTEX): 2 TSX tech stocks with rising profits

CGI (GIB.A) & Open Text (OTEX): 2 TSX tech stocks with rising profits
Image source: © 2022 Kalkine Media®    

Highlights

  • CGI Inc (TSX: GIB.A) and Open Text Corporation (TSX: OTEX) drew investor attention on Thursday, February 3, as it reported growing revenues and profits for their latest quarters.
  • The Canadian tech players’ notable earnings report came as Meta (NASDAQ: FB) missed its Q4 FY2021 earnings expectations and reported a downbeat forecast for Q1 FY2022, causing the TSX tech index to decline five per cent on Thursday.
  • Open Text Corporation saw its GAAP net income soar by 234.9 per cent YoY to C$ 88.3 million in the latest quarter.

CGI Inc (TSX: GIB.A) and Open Text Corporation (TSX: OTEX) drew investor attention on Thursday, February 3, as it reported growing revenues and profits for their latest quarters.

The Canadian tech players’ notable earnings report came as Meta (NASDAQ: FB) missed its Q4 FY2021 earnings expectations and reported a downbeat forecast for Q1 FY2022, causing the TSX tech index to decline five per cent on Thursday.

Let’s see how CGI and Open Text Corporation have been performing.

1.     CGI Inc (TSX: GIB.A)

The C$ 26-billion market cap tech company saw its net earnings amount to C$ 367.4 million in the latest quarter, indicating a seven per cent growth from Q1 FY2021.

CGI said that its revenue increased to C$ 3.09 billion in the first quarter of fiscal 2022, which was up by 2.4 per cent year-over-year (YoY).

Also read: Imperial (IMO) & Tourmaline: TSX oil stocks to buy as OPEC lifts output?

The Montreal-based IT and business consulting service provider recorded bookings worth C$ 3.6 billion in Q1 FY2022, with the book-to-bill ratio reaching 116.5 per cent.

CGI stock, on the other hand, swelled by almost seven per cent in the past one week, closing at C$ 109.48 apiece on Thursday.

CGI Inc and OpenText Corporation earnings for the latest quarter

 Image source: © 2022 Kalkine Media®    

2.     Open Text Corporation (TSX: OTEX)

The Waterloo-headquartered information management firm saw its GAAP net income soar by 234.9 per cent YoY to C$ 88.3 million in the latest quarter.

With a price-to-earnings (P/E) ratio of 39, Open Text Corporation reported a 2.5 per cent YoY growth in its total revenues to C$ 876.8 million in the second quarter of fiscal 2022.

Open Text's Board of Directors also announced a quarterly cash dividend of C$ 0.2209 apiece on February 2, payable on March 25.

Stocks of Open Text closed at C$ 59.02 apiece on Thursday, with a nine-month gain of over four per cent.

Bottomline

The tech sector in Canada has taken quite a beating lately amid the rising fear of interest rate hikes.

However, with the crucial role it plays in almost every sector and industry in the present age, investors are generally advised not to undermine the importance of the tech space, which can take on an even bigger role in the future.

Also read: Converge (CTS) & Celestica (CLS): 2 TSX alternatives to Meta (FB) stock

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