Alithya Group (TSE:ALYA) Posts Earnings Results

Alithya Group (TSE:ALYA) announced its quarterly earnings results on Friday. The company reported C$0.05 EPS for the quarter, FiscalAI reports. The company had revenue of C$103.37 million during the quarter. Alithya Group had a negative return on equity of 27.81% and a negative net margin of 9.03%.

Here are the key takeaways from Alithya Group’s conference call:

• Revenue fell 16.8% year over year to CAD 103.4 million, while adjusted EBITDA declined to CAD 8.3 million from CAD 12.8 million and adjusted net earnings fell 51.8% to CAD 4.6 million.
• Cost reductions supported sequential improvement: SG&A was down CAD 3.1 million from the prior quarter, and adjusted EBITDA rose to CAD 8.3 million from CAD 5.4 million, lifting its margin to 8% from 5.2% despite slightly lower revenue.
• Bookings increased 22% sequentially to CAD 108.2 million, with book-to-bill of 1.05, or 1.12 excluding two long-term contracts. Enterprise Transformation led with a 1.17 book-to-bill, and 48% of bookings were fixed-price or fixed-fee; management said project starts and conversion will shape the revenue recovery, typically over about two quarters.
• Industry Services and Solutions revenue fell 21.5% year over year amid reduced Quebec government spending, weakness in financial services, and a shift away from lower-margin work; the segment also recorded a CAD 30.4 million non-cash goodwill impairment. Operating cash flow was CAD 0.9 million, and net debt to trailing adjusted EBITDA rose to 3.2 times from 2.9 times at the prior quarter-end.

Alithya Group Stock Up 3.0%

TSE:ALYA traded up C$0.03 during trading hours on Friday, reaching C$1.04. The company’s stock had a trading volume of 22,435 shares, compared to its average volume of 52,631. The company has a market capitalization of C$100.64 million, a P/E ratio of -2.42, a price-to-earnings-growth ratio of 2.38 and a beta of -1.34. Alithya Group has a 12 month low of C$0.94 and a 12 month high of C$1.83. The company has a debt-to-equity ratio of 95.41, a quick ratio of 1.32 and a current ratio of 1.45. The stock has a 50 day moving average price of C$1.10 and a two-hundred day moving average price of C$1.23.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Desjardins cut their target price on shares of Alithya Group from C$1.15 to C$1.10 and set a “hold” rating for the company in a report on Thursday, October 8th. Barrington Research downgraded shares of Alithya Group from an “outperform” rating to a “market perform” rating in a research note on Friday, August 14th. Ventum Financial lowered shares of Alithya Group from a “buy” rating to a “neutral” rating and lowered their price objective for the company from C$2.00 to C$1.35 in a research report on Tuesday, August 18th. Finally, ATB Cormark Capital Markets cut shares of Alithya Group from an “outperform” rating to a “sector perform” rating and dropped their price objective for the stock from C$1.60 to C$1.35 in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of C$1.46.

Alithya Group Company Profile

We are trusted advisors who provide AI-centric strategic consulting and digital transformation services. We help solve business challenges that enable our clients to unlock new opportunities, modernize processes, and gain efficiencies. We leverage a world-class team of passionate industry experts, AI-based IP solutions, the latest digital technologies, a solid understanding of mission critical business applications and a partner ecosystem to accelerate results. We’ve built a foundation of success that includes a specialized global delivery network to provide end-to-end solutions.