Alithya Group (TSE:ALYA) Releases Quarterly 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%

Shares of ALYA stock traded up C$0.03 during trading hours on Friday, hitting C$1.04. 41,039 shares of the company were exchanged, compared to its average volume of 52,716. Alithya Group has a 52 week low of C$0.94 and a 52 week high of C$1.83. The company has a current ratio of 1.45, a quick ratio of 1.32 and a debt-to-equity ratio of 95.41. The business has a 50 day moving average of C$1.10 and a two-hundred day moving average of C$1.22. The company has a market capitalization of C$100.64 million, a PE ratio of -2.42, a PEG ratio of 2.38 and a beta of -1.34.

Wall Street Analyst Weigh In

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