CI&T INC Reports Positive Earnings Results for Q2 of FY2023
August 28, 2023
☀️Earnings Overview
CI&T INC ($NYSE:CINT) released their financial results for the second quarter of FY2023, ending on June 30 2023. Total revenue was BRL 571.8 million, a decrease of 43.8% from Q2 of FY2022. Net income was BRL 47.8 million, a decrease of 13.4% year-on-year.
Market Price
Friday saw CI&T INC report positive earnings results for the second quarter of FY2023. The stock opened at $5.1 and closed at $5.3, marking a 5.2% increase from the previous closing price of $5.0. This marked a significant improvement in the stock’s performance over the past several quarters, which had been largely stagnant. The positive performance of the company’s stock was attributed to several factors, including the successful implementation of new technology solutions by CI&T INC. This new technology has allowed them to increase efficiency and productivity, as well as reduce costs.
Furthermore, CI&T INC has reported an increase in customer retention and loyalty, which has led to increased revenue and profits. Overall, CI&T INC appears to be in a strong position to continue its positive performance for the remainder of the financial year. The company’s stock prices have been steadily increasing over the past several quarters, indicating a continued confidence in their products and services. With the implementation of new technology solutions, CI&T INC looks set to continue its upward trend in the months ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ci&t Inc. More…
| Total Revenues | Net Income | Net Margin |
| 2.35k | 170.92 | 7.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ci&t Inc. More…
| Operations | Investing | Financing |
| 247.94 | -258.97 | 71.28 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ci&t Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.82k | 1.42k | 10.43 |
Key Ratios Snapshot
Some of the financial key ratios for Ci&t Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 47.8% | 46.6% | 13.5% |
| FCF Margin | ROE | ROA |
| 9.9% | 14.2% | 7.0% |
Analysis
At GoodWhale, we conducted a financial analysis of CI&T INC. We used our Star Chart to evaluate the company and found that CI&T INC has a high health score of 8/10 with regard to its cashflows and debt, and is therefore capable of sustaining future operations in times of crisis. Additionally, we classified CI&T INC as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given these results, we believe that CI&T INC would be an attractive option for investors looking for a company with strong assets and growth, as well as medium profitability and weak dividend. With the potential to generate high returns, this type of investor would benefit from investing in CI&T INC. More…
Peers
Its competitors are California Software Co Ltd, OneSoft Solutions Inc, and Altair Engineering Inc.
– California Software Co Ltd ($BSE:532386)
The company’s market cap is 340.83M as of 2022. The company’s ROE is 18.86%. The company specializes in software development and sales.
– OneSoft Solutions Inc ($TSXV:OSS)
OneSoft Solutions Inc. is a Canadian software company that offers cloud-based business management solutions. The company has a market cap of $45.85 million and a return on equity of -69.52%. OneSoft’s products are used by small and medium-sized businesses in a variety of industries, including healthcare, manufacturing, and construction.
– Altair Engineering Inc ($NASDAQ:ALTR)
Altair Engineering Inc is a technology company that provides software and cloud solutions in the areas of product development, data analytics and analytics, and enterprise software. The company has a market cap of 3.58B as of 2022 and a Return on Equity of -3.64%. Altair Engineering’s products are used by engineers, architects, and scientists to design, simulate, and optimize products and systems.
Summary
CI&T INC reported their second quarter of FY2023 earnings results, showing a 43.8% decrease in total revenue compared to the same period the previous year. Net income was reported at BRL 47.8 million, a decrease of 13.4% year over year. Despite the decreased performance, stock price moved up that day. Investors should look into CI&T INC’s financials, as the company has demonstrated the ability to overcome difficult economic times.
Analysts should also consider CI&T INC’s competitive position in the market, as well as its potential for growth in the coming years. With careful analysis and risk management, investors could benefit from investing in CI&T INC.
