Overview

* Alithya ( ALYAF ) fiscal Q2 revenue grows 11.5%, slightly beating analyst expectations

* Adjusted net earnings for fiscal Q2 rise 80% yr/yr

* Net loss for fiscal Q2 increases due to C$38 mln impairment charge

Outlook

* Alithya ( ALYAF ) focuses on leveraging acquisitions and new technologies for growth

* Company aims to capitalize on AI transformation projects

* Alithya ( ALYAF ) notes challenging market conditions impacting the industry

Result Drivers

* U.S. REVENUE GROWTH - U.S. revenues rose 34.8% due to organic growth in enterprise transformation services and higher billing rates

* GROSS MARGIN IMPROVEMENT - Gross margin increased due to higher billing rates and a shift towards higher-value services

* IMPAIRMENT CHARGE - Net loss increased due to a C$38 mln impairment of goodwill and intangibles

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Slight C$124.29 C$123.10

Revenue Beat* mln mln (6

Analysts

)

Q2 C$0.10

Adjusted

EPS

Q2 EPS -C$0.32

Q2 C$9.47

Adjusted mln

Net

Income

Q2 Net -C$30.96

Income mln

Q2 C$12.79

Adjusted mln

EBITDA

Q2 10.30%

Adjusted

EBITDA

Margin

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Alithya Group Inc ( ALYAF ) is C$3.00, about 42% above its November 13 closing price of C$1.74

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)