Alithya Loss Narrows in Q4, Sales Hit Record

Alithya Group Inc (ALYA), a North American company specializing in digital strategy and technologies, reported record revenues in the fourth quarter.

Revenues came in at C$78 million for Q4 2021, an increase of 6.5%, from C$73.2 million in Q4 2020. Gross margin increased 12% to C$23.5 million from C$20.9 million a year ago. Adjusted EBITDA rose 61.8% to C$3.3 million, compared to C$2 million in the same quarter last year.

Meanwhile, net loss for the three months ended March 31, narrowed to C$2.5 million (-C$0.04 per share), compared to a loss of C$34 million (-C$0.59 per share) for the prior-year quarter.

Alithya President and CEO Paul Raymond said, “We are very pleased to report record quarterly revenues and gross profit generated in the fourth quarter of Fiscal 2021. We also finished the year with record bookings, and numerous new clients, reflecting our well-established reputation as a trusted advisor in digital transformation. These are extraordinary accomplishments, in extraordinary times, and that positions us favorably going into Fiscal 2022.”

“On the heels of our newly gained increased scale, our vision continues to drive our long-term strategic plan, initiated in 2018, and Fiscal 2022 should see us continue on our committed path of profitable organic growth and quality acquisitions,” added Raymond.

The acquisition of R3D Consulting also added two 10-year contracts that will add approximately C$600 million in the confirmed backlog as of April 1, 2021. (See Alithya Group Inc stock analysis on TipRanks)

Two months ago, Scotiabank analyst Paul Steep reiterated a Hold rating on ALYA while raising its price target to C$3.25 (from C$3.00). This implies that shares are fairly priced at current levels.

Consensus among analysts is that ALYA is a Hold based on 3 Holds. The ALYA average analyst price target of C$3.41 implies 4.15% upside potential to current levels. Shares have gained approximately 20% year-to-date.

TipRanks’ Smart Score

ALYA scores a 4 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock’s returns are likely to perform in line with the overall market.

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