Infosys ( INFY Quick Quote INFY - Free Report) declared that it collaborated with Telenor Norway, a wholly-owned telecommunications operator of Telenor, to accelerate the latter’s IT modernization journey in support of the 'Beyond Connectivity' program.
Through the move, Infosys intends to transform Telenor Norway's business growth, helping it become a product-based digital telecommunications company. The Indian IT company will enhance Telenor Norway's end-user experiences in areas of digital, Analytics & Artificial Intelligence, and operations by leveraging its existing solution portfolio.
Further, Infosys intends to develop revenue channels for Telenor Norway, reducing its time to market and ensuring operational efficiency. Under the co-managed model, the company will put in efforts to design the required IT setup, enabling it to become a digital-first organization.
Recently, Infosys collaborated with Bpost (Belgium Post), a postal operator and e-commerce logistics provider headquartered in Brussels, to provide cloud security solutions to identify and ensure rapid response to suspicious security events.
In the same month, Infosys collaborated with Spirit AeroSystems, Inc., one of the world’s largest manufacturers of aerostructures for commercial airplanes, defense platforms and business/regional jets. Per the five-year contract, the IT company intends to offer end-to-end aerostructure and systems engineering services for product development of commercial, business jet and emerging aircraft programs.
Back-to-back contract wins are driving Infosys’ top-line performance. In first-quarter fiscal 2023 results, the company’s revenues jumped 17.5% year over year to $4.44 billion.
However, Infosys’ near-term growth prospects are likely to be hurt as organizations are postponing their plans of investing in big and expensive technology products on growing global slowdown concerns amid the current macroeconomic challenges and geopolitical tensions. Elevated operating expenses related to hiring employees, and sales and marketing strategies to capture more market share are likely to strain margins in the near term.
These, along with the rapid proliferation of customizable Internet-based software, have been hampering Infosys’ traditional outsourcing business. The challenges might weigh on the company’s profitability going ahead.
Zacks Rank & Stocks to Consider
Infosys currently carries a Zacks Rank #4 (Sell). Shares of INFY have lost 26.9% in the past year.
Some better-ranked stocks from the broader
Computer and Technology sector are Clearfield ( CLFD Quick Quote CLFD - Free Report) , Silicon Laboratories ( SLAB Quick Quote SLAB - Free Report) and EPAM Systems ( EPAM Quick Quote EPAM - Free Report) . While Clearfield and Silicon Laboratories currently flaunt a Zacks Rank #1 (Strong Buy), EPAM carries a Zacks Rank #2 (Buy). You can see . the complete list of today's Zacks #1 Rank stocks here The Zacks Consensus Estimate for Clearfield's fourth-quarter fiscal 2022 earnings has been revised 10 cents north to 80 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved 36 cents north to $3.13 per share in the past 60 days. Clearfield’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 33.9%. Shares of CLFD have improved 112% in the past year. The Zacks Consensus Estimate for Silicon Laboratories’ third-quarter 2022 earnings has increased 36% to $1.13 per share over the past 60 days. For 2022, earnings estimates have moved 20.5% up to $4.41 per share in the past 60 days. Silicon Laboratories’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 63.6%. Shares of SLAB have declined 12.1% in the past year. The Zacks Consensus Estimate for EPAM's third-quarter 2022 earnings has been revised 7 cents north to $2.52 per share over the past seven days. For 2022, earnings estimates have moved 15 cents north to $9.96 per share in the past seven days. EPAM's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23%. Shares of the company have declined 38% in the past year.