Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Capgemini fourth quarter sales beat estimates amid strong cloud demand

Published 21-02-2023, 01:56 pm
© Reuters.
CAPP
-

By Scott Kanowsky

Investing.com -- Capgemini SE (EPA:CAPP) posted fourth quarter sales that came in above estimates, as client demand for cloud and data services remained strong despite larger macroeconomic headwinds.

Sales at the French information technology firm grew by 14% at constant exchange rates in the final three months of 2022, beating expectations of 12%.

Bookings also rose by 11.4% to €6.7 billion (€1 = $1.0669), corresponding to a book-to-bill ratio of 1.16. Analysts at ODDO BHF called the figure "solid."

The Paris-based group flagged persistent headwinds from rising interest rates, elevated inflation, and the war in Ukraine, but said it has still seen "structural demand" from large corporations and organizations for "digital transformation projects covering an increasing scope of their value chain."

"Continued momentum in Cloud and Data reflects the priority given by Group clients to their investments in technology," the company said in a statement. "These investments are increasingly made as part of high added-value strategic projects requiring strong industry expertise."

For 2023, Capgemini guided for revenue growth of between 4% to 7% at constant currency, with an operating margin of 13% to 13.2% and organic free cash flow of around €1.8B.

The ODDO BHF analysts said the outlook was roughly in line with its forecasts, but cautious enough to leave room for an annual earnings beat if the broader trading environment does not deteriorate dramatically.

Shares in Capgemini were higher in early European trading on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.