Cap Gemini Predicts Higher Profit Margin, ‘Limited’ Sales Growth
February 16, 2012, 2:56 AM ESTBy Marie Mawad
Feb. 16 (Bloomberg) -- Cap Gemini, the French computer- services company that competes with International Business Machines Corp., forecast higher operating profit margin this year amid “limited” revenue growth, after beating analyst estimates in 2011.
The Paris-based company, whose clients include the British government, reported full-year revenue of 9.7 billion euros ($12.6 billion) today in a statement on Business Wire. Profit was 404 million euros. Analysts had expected sales of 9.63 billion euros on net income of 340.1 million euros, according to average estimates compiled by Bloomberg.
Cap Gemini, whose software engineers helped upgrade the flight control system of the German civil aviation, did not put a figure on its forecast, citing reduced visibility and uncertain macroeconomic environment.
Analysts project 2012 revenue increase of about 2 percent to 9.9 billion euros, based on 19 estimates compiled by Bloomberg. Operating margin is expected at 6.7 percent of revenues, down from 7.4 percent in 2011.
Cap Gemini shares closed up 2.1 percent yesterday in Paris trading, at 29.33 euros. The software consulting company’s stock jumped 21 percent in 2012 through yesterday.
--Editor: Kenneth Wong
To contact the reporter on this story: Marie Mawad in Paris at mmawad1@bloomberg.net
To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net -0- Feb/16/2012 06:54 GMT
