DXC Technology DXC recently announced that it has entered a multi-year renewal agreement with Panama-based Copa Airlines to modernize the latter’s mainframe-based passenger service system (“PSS”) and fully migrate to public cloud.
Collaborating with strategic partner Microsoft MSFT and applying its own Cloud Right approach, DXC along with Copa Airlines will be leading the transition process. The new platform will accelerate the air carrier’s digital transformation, while ensuring better customer and staff experiences. It will support the integration of third-party applications that power Copa Airlines’ flexible shopping, merchandising and New Distribution Capability (NDC).
DXC will utilize Microsoft’s Azure for its strength and experience in this mainframe cloud migration. Its Cloud Right approach will optimize and manage Copa Airlines’ existing investments and ensure the best use of on-premises, private and public cloud environments.
The transition is anticipated to drive Copa Airlines’ revenue growth in the near term, and expand its global clientele base. It is worth mentioning that Copa Airlines was founded in 1947 as the National Airline of Panama.
DXC Technology Company. Price and Consensus
DXC Technology Company. price-consensus-chart | DXC Technology Company. Quote
DXC is currently focusing on the cloud computing market, cyber business and Big Data business. Clients are increasingly relying on cloud-based services as it makes the IT system more agile and productive, which leads to considerable cost savings. However, the segment is still underpenetrated.
Per Gartner, the worldwide IT spending is anticipated to be $4.2 trillion in 2021, suggesting an increase of 8.6% from 2020. The research firm expects worldwide spending on IT services to grow 9.8% year over year to $1.28 trillion this year. Therefore, DXC, being a major player in the space, is anticipated to benefit from this untapped opportunity.
Zacks Rank & Other Stocks to Consider
DXC currently sports a Zacks Rank #2 (Buy), while Microsoft carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Advanced Micro Devices AMD and Qualcomm QCOM, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 60 days. For 2021, earnings estimates have moved north by 1 cent to $2.64 per share in the last 60 days.
Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 58.2% in the YTD period.
The consensus mark for Qualcomm’s first-quarter fiscal 2022 earnings has been raised to $3.01 per share from $3 in the past 30 days. For fiscal 2022, earnings estimates have been revised upward by 1.5% to $10.49 per share in the past 30 days.
Qualcomm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%. Shares of QCOM have gained 19.7% YTD.
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