Group 1 - Alithya Group reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, and showing an increase from $0.04 per share a year ago, resulting in an earnings surprise of +25.00% [1] - The company posted revenues of $89.73 million for the quarter ended June 2025, which was slightly below the Zacks Consensus Estimate by 0.76%, but an increase from $88.35 million year-over-year [2] - Alithya has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates two times during the same period [2] Group 2 - The stock has increased approximately 78.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 9.6% [3] - The future performance of Alithya's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $89.97 million, and for the current fiscal year, it is $0.20 on revenues of $367.9 million [7] Group 3 - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Alithya currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6]

Core Insights - Alithya Group inc. reported a revenue increase of 2.7% to $124.2 million for Q1 fiscal 2026 compared to the same quarter last year [3][4][7] - The company achieved a net earnings of $0.2 million, a significant improvement from a net loss of $2.8 million in the same quarter last year [15][16] - Adjusted Net Earnings rose by 31.8% to $6.5 million, translating to an Adjusted Net Earnings per Share of $0.07 [16][30] - The company signed 20 new clients and acquired eVerge Interests, Inc., enhancing its service offerings [23][24] Financial Highlights - Revenues for Q1 fiscal 2026 were $124.2 million, up from $120.9 million in Q1 fiscal 2025 [3][7] - Gross margin increased by 3.3% to $39.8 million, with a gross margin percentage of 32.1% [11][12] - Selling, general and administrative expenses decreased by 3.4% to $30.6 million, representing 24.6% of revenues [14] - Adjusted EBITDA increased by 15.6% to $11.6 million, with an Adjusted EBITDA Margin of 9.4% [17][31] Revenue Breakdown - Canadian revenues decreased by 8.5% to $59.6 million, primarily due to reduced government contracts and project maturities [8] - U.S. revenues increased by 17.3% to $59.5 million, driven by organic growth and higher billing rates [9] - International revenues saw a slight increase of 0.7% to $5.1 million [10] Bookings and Backlog - Q1 bookings reached $118.1 million, resulting in a Book-to-Bill Ratio of 0.95 [18][19] - The backlog represented approximately 15 months of trailing twelve-month revenues as of June 30, 2025 [4] Liquidity and Capital Resources - Net cash used in operating activities was $4.2 million, a decrease of $20.9 million from the previous year [20][21] - As of June 30, 2025, the company had $115.7 million in available capital resources [22]

Core Viewpoint - Alithya Group (ALYAF) is anticipated to report flat earnings of $0.04 per share for the quarter ended June 2025, with revenues expected to reach $90.42 million, reflecting a 2.3% increase from the previous year [1][3]. Earnings Report Expectations - The earnings report is scheduled for release on August 13, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. - The sustainability of any immediate price changes will largely depend on management's commentary during the earnings call [2]. Estimate Revisions and Predictions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - Alithya's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +63.64%, suggesting a strong likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Alithya exceeded expectations by posting earnings of $0.08 per share against an expected $0.03, achieving a surprise of +166.67% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Alithya is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors beyond earnings expectations when making investment decisions [17].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Alithya Group (ALYAF) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [1][2][6] Company Summary - Alithya Group (ALYAF) currently holds a Zacks Rank 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4] - The stock is trading at a P/E ratio of 8.27, significantly lower than the industry average of 23.99, suggesting it may be undervalued [4] - Over the past year, ALYAF's Forward P/E has fluctuated between a high of 19.25 and a low of 7.24, with a median of 9.88, indicating volatility in its valuation [4] - ALYAF has a PEG ratio of 0.59, which is lower than the industry average PEG of 1.19, further supporting the notion of undervaluation [5] - The PEG ratio for ALYAF has ranged from a high of 1.28 to a low of 0.46 over the past 52 weeks, with a median of 0.64, reflecting its earnings growth expectations [5] - Overall, the financial metrics suggest that Alithya Group is likely undervalued and presents a strong investment opportunity for value investors [6]

Company Performance - Alithya Group (ALYAF) shares have increased by 4.4% over the past month, reaching a new 52-week high of $1.91, and have gained 82.6% since the start of the year, outperforming the Zacks Business Services sector (2.2%) and the Zacks Technology Services industry (13.3%) [1] - The company has a strong record of positive earnings surprises, beating the Zacks Consensus Estimate in each of the last four quarters, with the latest EPS reported at $0.08 against a consensus estimate of $0.03 [2] - For the current fiscal year, Alithya is expected to post earnings of $0.21 per share on revenues of $363.01 million, reflecting no change in EPS and a 6.73% increase in revenues. For the next fiscal year, earnings are projected to be $0.28 per share on revenues of $381.28 million, indicating a year-over-year change of 33.33% in EPS and 5.03% in revenues [3] Valuation Metrics - Alithya has a Value Score of A, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of A, indicating strong value potential [6] - The stock trades at 9.1X current fiscal year EPS estimates, significantly lower than the peer industry average of 21.3X. On a trailing cash flow basis, it trades at 4.3X compared to the peer group's average of 12.9X, with a PEG ratio of 0.65, positioning it favorably for value investors [7] Zacks Rank - Alithya currently holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, making it a suitable choice for investors looking for stocks with strong potential [8] Industry Comparison - The Technology Services industry is performing well, ranking in the top 34% of all industries, providing favorable conditions for both Alithya and its peer, Coherent Corp. (COHR), which has a Zacks Rank of 1 (Strong Buy) [9][11]

Core Points - Alithya Group inc. will report its financial results for the first quarter of fiscal 2026 on August 13, 2025 [1] - A conference call will be held at 9:00 a.m. (Eastern time) to discuss the financial results [2] - Financial statements and related documents will be available on Alithya's Investors page [1] Company Overview - Alithya is a provider of AI-centric strategic consulting and digital transformation services [3] - The company focuses on solving business challenges to unlock new opportunities and modernize processes [3] - Alithya leverages a team of industry experts and AI-based solutions to accelerate results [3]

Core Insights - Alithya Group Inc. has successfully implemented Microsoft Dynamics 365 Finance and Supply Chain Management in France and Spain for Hayward Holdings, marking a significant step in Hayward's global standardization efforts [1][2]. Group 1: Company Initiatives - Hayward Holdings aims to standardize its operations on a single technology platform to normalize manufacturing and distribution processes globally while enhancing customer experience [2]. - The implementation in Europe is part of a broader strategy that includes a rollout in North America, allowing Hayward to leverage data insights for improved decision-making and operational efficiency [3]. Group 2: Partnership and Collaboration - Alithya's team collaborated closely with Hayward to ensure successful adoption of the new system among employees across Europe, highlighting the importance of organizational change management and training [4]. - The partnership with Hayward signifies Alithya's capability in delivering digital transformation services to international brands [4]. Group 3: Company Profiles - Hayward Holdings, Inc. is recognized as a leading global designer and manufacturer of pool and outdoor living technology, focusing on energy-efficient and sustainable solutions [4]. - Alithya positions itself as a trusted advisor in strategic consulting and digital transformation, leveraging AI and advanced technologies to help clients modernize processes and unlock new opportunities [5].

Core Insights - Alithya Group released its 2025 Industry Trends Reports focusing on manufacturing, healthcare, and financial services, providing insights into key trends, challenges, and opportunities for the next 12 months [1][7] Manufacturing Industry Trends - Manufacturers are increasingly adopting digital tools to enhance productivity, ensure continuity, and maintain a competitive edge, with AI, analytics, and cybersecurity becoming central to strategic planning [4][7] - Over 50% of respondents identified operational efficiency as their top innovation priority, and nearly half are utilizing AI for supplier diversification and demand forecasting [7] Healthcare Industry Trends - Healthcare leaders are addressing rising cyber risks, budget constraints, and the necessity for responsible AI use in patient care, with a focus on innovation driven by stability and security [5][7] - Cybersecurity is cited as the top challenge by 60% of respondents, an increase from its previous ranking in 2024 [7] Financial Services Industry Trends - Financial services firms are cautiously modernizing, balancing innovation with risk management, with cloud adoption, AI oversight, and automation shaping their future [6][7] - 75% of firms are progressing with secure cloud transformation, while 40% identify cybersecurity as a primary concern related to generative AI [7] Overall Industry Trends - The reports highlight a common trend of increased AI adoption across all sectors, with specific focus areas including AI governance, cybersecurity investments, and automation efficiency [2][7] - 60% of respondents are actively pursuing financial efficiency measures, and nearly 60% are investing in intelligent document processing to streamline operations [7]

Core Viewpoint - Alithya Group (ALYAF) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to significant stock price movements based on their buying or selling actions [4]. Alithya's Earnings Outlook - The recent upgrade for Alithya signifies an improvement in the company's underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5]. - Alithya is projected to earn $0.13 per share for the fiscal year ending March 2026, with no year-over-year change, but the Zacks Consensus Estimate has increased by 81.5% over the past three months [8]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Alithya's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Company Overview - Alithya held its Fourth Quarter and Fiscal 2025 Results Conference Call, indicating a focus on financial performance and strategic direction [2][3]. Financial Performance - The press release and Management Discussion and Analysis (MD&A) containing complete financial statements were published, highlighting the company's financial results for the quarter [3]. Strategic Outlook - The company discussed forward-looking statements regarding future growth, operational results, and business prospects, emphasizing the importance of client demand and leveraging services to excel in a competitive market [4][5].