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DXC to Manage University of Newcastle's Core Campus App

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DXC Technology (DXC - Free Report) recently announced that it has inked a Managed Services agreement with the Australia-based University of Newcastle to manage its core campus application, Oracle’s PeopleSoft Campus Solutions, and infrastructure.

Through this agreement, DXC intends to offer 24/7 critical coverage, Amazon Web Service (“AWS”) technology management, database, middleware support, and continuous delivery service, ensuring improved efficiency among staff and students of the Australian university. Oracle's PeopleSoft Solutions are designed to address complex business requirements and provide comprehensive business and industry solutions, enabling organizations to increase productivity, accelerate business performance, and provide a lower cost of ownership.

Per the agreement, DXC will enhance managed services, optimize deployment and investments of the University of Newcastle on the campus application, while enabling the university to deliver high-quality digital education and focus on business operations.

DXC is focusing on partnerships to enhance offerings. It is digging deep to expand its networking-based infrastructure with the benefits of VMware’s hybrid cloud offerings, which aided it in strengthening its position in the virtualization server market.

DXC is also in partnership with Amazon to develop cloud-based solutions for enterprise and public sector clients. We believe the company’s focus on entering into strategic partnerships will help it expand in the cloud computing space and generate additional revenues.

Currently, 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 substantial cost savings. However, the segment is still underpenetrated.

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 anticipates 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 upswing in IT spending.

Zacks Rank & Stocks to Consider

DXC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader computer and technology sector include the iPhone maker Apple (AAPL - Free Report) , sporting a Zacks Rank #1 (Strong Buy), Analog Devices (ADI - Free Report) and Axcelis Technologies (ACLS - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.

Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 24.6% in the past year.

The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 7 cents to $7.53 per share in the past 60 days.

Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.1%. Shares of ADI have dipped 4.2% in the past year.

The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past seven days. For 2022, earnings estimates have moved north by 12.4% to $3.99 per share in the last seven days.

Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 62.9% in the past year.

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