DXC Technology DXC announced that it has secured a five-year network and security services contract with the European Space Agency ("ESA") to provide scalable, secure network services to its international workforce of scientists, engineers and information technology (“IT”) specialists. This will enhance connectivity and collaboration across the space agency.
With the implementation of DXC's Platform X, ESA intends to attain a state of silent operations for its network and security systems. DXC Platform X enables IT professionals to detect and resolve abiding system lags quickly while automatically predicting and mitigating future business problems. This platform helps a company optimize its operations while reducing costs and offering immediate benefits for future operational models, thus aiding enterprise customers to achieve a state of ‘silent operations.’
The platform will transform ESA’s terrestrial network environment by improving the organization’s network scalability, performance, and security. The integration of Platform X will enable ESA to manage highly complex projects with confidential data and create new opportunities in the space technology market, thereby strengthening the agency’s space capabilities.
DXC Technology Company. Price and Consensus
DXC Technology Company. price-consensus-chart | DXC Technology Company. Quote
In January, DXC formed a global DXC ServiceNow Strategic Business Group in collaboration with ServiceNow NOW to advance the transformation of enterprise operational services. The collaboration with ServiceNow has enabled DXC to offer more cost-efficient and resilient technology services through Platform X to the enterprises automating their service operations and meeting customer requirements.
Per Gartner, worldwide IT spending is anticipated to be $4.5 trillion in 2022, suggesting an increase of 5.1% from 2021. The research firm expects worldwide spending on IT services to grow 7.9% 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.
The company is focusing on the cloud computing market, cyber business and Big Data business. Clients are increasingly relying on cloud-based services as DXC makes the IT system more agile and productive, which leads to considerable cost savings. However, the segment is still underpenetrated.
Zacks Rank & Key Picks
DXC and ServiceNow both currently carry a Zacks Rank #3 (Hold). Shares of DXC declined 12.8%, while that of NOW jumped 8.8% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Avnet AVT and Analog Devices ADI, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 60 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 60 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have rallied 12.6% in the past year.
The Zacks Consensus Estimate for Analog Devices' third-quarter fiscal 2022 earnings has been revised upward by 5 cents to $2.42 per share over the past 30 days. For fiscal 2022, earnings estimates have moved 16 cents north to $9.24 per share in the past 30 days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.7%. Shares of ADI have increased 0.5% in the past year.
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