03:46 PM EST, 11/14/2024 (MT Newswires) -- Tech company Alithya Group ( ALYAF ) earlier on Thursday reported higher second quarter adjusted profit, despite lower revenues in Canada, and separately announced the appointment of Nicolas Lavoie as CFO. Adjusted profit rose to $5.3 million, or $0.05 per share, from $0.3 million, or nil per share, last year, boosted by lower selling, general and administrative expenses. Revenues decreased 6% to $111.5 million, compared to $118.5 million, reflecting lower revenue from Canada operations, which decreased 12.2% to $59.6 million during the quarter.

After completing its results analysis National Bank kept a Sector Perform rating on ALYA, but cut its Target to C$2 from $2.50 previously.

National noted Alithya ( ALYAF ) reported its FQ2 results with revenue below its estimate due to a tough spending environment, but it also noted the company was able to offset that top line miss with a favorable revenue mix and cost optimization, delivering margin expansion and adjusted EBITDA growth. National Bank said: "While it's still unclear when the macro will improve as this quarter's bookings continue to be soft, we think the company has been doing the right thing by focusing on matters it could control." The bank noted today's CFO appointment to fill the vacancy also reduces the execution risk. As Alithya ( ALYAF ) continues to build its scale, National expects M&A to kick in. In the meantime, debt reduction and share buybacks remain the top priorities, it added.

ALYA was last seen down just $0.01 at $1.76 on the TSX.

Price: 1.76, Change: -0.01, Percent Change: -0.56