GIB. A reported revenue growth of 1.3% to $3.67B (0.2% in constant currency). EBIT margin improved to 16.4% from 16.1% last year, and returns on capital remain healthy at 16.1% compared to 15.7%. Net debt also went down from $2.3B to $1.8B. Also, GIB. A did resume its buyback at a more aggressive pace in the most recent quarter, and GIB. A announced a dividend of $0.15 quarterly, a small yield of 0.4%. We think the initiation of dividends is used mainly to attract a new group of shareholders who can only purchase dividend-paying stocks, but we certainly like the move. Overall, decent operating results, and a meaningful improvement across metrics. GIB. A is still trading at 19.5x Forward P/E, and we think this is a fair multiple and we would be fine buying.
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