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Unisys Offers Cargo Portal Services for Air New Zealand

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Information technology firm, Unisys Corporation (UIS - Free Report) recently collaborated with Air New Zealand, the national airline of the country, to offer Cargo Portal Services (CPS) for its current and prospective freight forwarder clients. The collaboration is a natural extension of the long-serving ties of Unisys with the airline company. Air New Zealand has been using its cloud-based Logistics Management System to manage the air cargo business since 2010.

Unisys’ CPS facilitates freight forwarders to interact simultaneously with multiple carriers via an online portal to check the availability of shipment facilities. It also enables the freight forwarding clients to make bookings, track the shipments, produce IATA (International Air Transport Association) electronic Air Waybills and interact with customs authorities.

Air New Zealand’s collaboration with Unisys’ CPS will enable it to expand its cargo business by reaching to over 6,000 forwarders and shippers from 3,750 branch offices of 2,200 active users, spanning 330 cities in 105 countries. On its part, Air New Zealand Cargo operates more than 590 international flights per week, serving 32 cities in 18 countries around the globe. The airline has three dedicated international cargo terminals in New Zealand, namely Auckland, Wellington and Christchurch, in addition to a North American hub in Los Angeles, with gateways in Honolulu, Houston, San Francisco and Vancouver. Consequently, the tie-up is likely to further extend the business opportunities of the airline company.

With over 45 years of experience in the aviation industry, Unisys has created a niche market as more than 20% of the world’s air cargo shipments are processed through it. Unisys’ cargo solutions are also used by most of the world's leading carriers and the recent collaboration with Air New Zealand will further strengthen its position in the market. The stock underperformed the Zacks categorized IT Services industry in the last three months with an average negative return of 4.4% as against 7.4% gain for the latter.

Unisys is poised to provide its customers the latest technology applications, which gives it an edge over its peers. The information technology industry is presently undergoing a transition phase, forging new disruptive trends in cloud mobility, big data, social computing and increasing awareness of cyber security. In order to capitalize on the trends, Unisys is rationalizing its services and solution portfolio by shifting its offerings to cloud-based and software-as-a-service delivery models.

Unisys is also concentrating on business opportunities in fewer, more profitable sectors in the IT marketplace. To drive future growth, Unisys is focusing its resources and investments in four targeted, high-potential market areas, including security (IT security and physical security); data center transformation and outsourcing services; end-user outsourcing and support services; and applications modernization and outsourcing services. As it seeks to keep up with the evolution in the IT industry, the company’s services unit looks set to take advantage of growth prospects in high-margin services.

Unisys currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Barracuda Networks, Inc. CUDA, Science Applications International Corporation SAIC and CDW Corporation CDW, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Barracuda Networks has a strong long-term earnings growth expectation of 21.3%. In addition, the stock has a stellar earnings history, beating estimates in each of the trailing four quarters.

Science Applications International Corporation is another strong performer in the industry with a solid earnings history, beating estimates in each of the trailing four quarters.

CDW Corporation has a long-term earnings growth expectation of 8%. The stock also has a healthy positive earnings history, beating estimates in three of the trailing four quarters.

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