Infosys' (INFY) Finacle Partners With Guaranty Trust Bank
Infosys' INFY wholly-owned subsidiary, Finacle, has been chosen as the new digital transformation partner by Nigeria's Guaranty Trust Bank (“GTBank”). Notably, GTBank is set to initiate its multi-country digital transformation program using the Finacle Digital Banking Suite.
Finacle positions itself as the foremost provider of comprehensive digital banking solutions, catering to core banking, digital engagement, lending, payments, cash management and a wide array of other services. Additionally, it meets the artificial intelligence and blockchain needs of financial institutions.
GTBank, aiming to enhance its digitization and automation efforts while achieving cost-efficiency, chose Finacle due to its well-established track record in retail, wealth and corporate banking. The Finacle Digital Banking Suite will utilize Finacle's Cloud Native and API-Driven features, preparing GTBank for seamless integration with its ecosystem partners.
Infosys Limited Price and Consensus
Infosys Limited price-consensus-chart | Infosys Limited Quote
GTB Deal to Boost Infosys’ Financial Services Business
Shares of Infosys have declined 1.5% year to date against the Computer and Technology Sector’s rise of 34.7% in the same time frame.
This new partnership with GTBank has the potential to relieve the persistent weakness experienced by this Zacks Rank #4 (Sell) company, particularly within its banking and financial services clients, especially in areas like asset management, investment banking, mortgage, cards and payments.
In the last reported financial results for first-quarter fiscal 2024, Infosys noticed that financial institutions are delaying its decision-making processes amid the ongoing macroeconomic challenges. In the first quarter, revenues from the Financial Services segment fell 4.7% to $1.3 billion. The softness was particularly noticeable in Europe.
This new GTB deal, which has operations across multiple markets in Europe and Africa, can boost INFY’s Financial Services performance. Additionally, the large U.S. banking clients remained strong in the first quarter of 2024, offsetting some of Infosys' challenges.
INFY’s first-quarter revenues of 2024 grew 3.9% on a year-over-year basis to $4.62 billion. For fiscal 2024, the company expects revenues to grow between 1% and 3.5% year over year at cc. The Zacks Consensus Estimate is pegged at $18.63 billion, indicating 3.9% year-over-year growth.
Stocks to Consider
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The Zacks Consensus Estimate for NVIDIA's third-quarter fiscal 2024 earnings has been revised northward by $1 to $3.32 per share in the past 30 days. For fiscal 2024, earnings estimates have increased by $2.67 to $10.67 per share in the past 30 days.
NVIDIA’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters, while missing on one occasion, the average surprise being 9.8%. Shares of NVDA have surged 180.6% year to date.
The Zacks Consensus Estimate for Dell’s third-quarter 2023 earnings has been revised 8.08% upward to $1.47 per share in the past 30 days. For 2023, earnings estimates have moved 13.51% upward to $6.30 per share in the past 30 days.
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