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SAP SE SuccessFactors Solutions Implemented by Rostelecom

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SAP SE (SAP - Free Report) , recently announced that its SAP SuccessFactors human capital management ("HCM") solutions, including SAP SuccessFactors Employee Central, has got a new client in leading Russian telecommunication behemoth, Rostelecom.

SuccessFactors Employee Central, which forms the backbone of the company’s Human Capital Management offerings, surpassed the 1,580-customer mark in fourth-quarter 2016. Robust market traction of these solutions remains a strong top-line growth driver for SAP.

Rostelecom is in the midst of a digital transformation to simplify its human resources (“HR”) processes, talent acquisition and management processes. The company believes that adoption of skilful HCM solutions will allow it to attract best talents and manage them efficiently, as well as make it flexible enough to outshine peers. Rostelecom deployed SAP SuccessFactors Employee Central to unify its data structure.

The company has also implemented other SAP SuccessFactors services like Recruiting, Onboarding solutions, Performance & Goals, Compensation and Succession & Development solutions. Rostelecom expects to slash recruitment costs, generate cost savings and improve employee engagement. Going forward, it has plans to implement SAP SuccessFactors Learning solution to improve training process.

In recent times, SAP’s HCM applications are being adopted by leading international organizations to modernize their HR practices. These offerings have been increasingly helping clients manage both permanent and temporary workforce. During fourth-quarter 2016, SAP SuccessFactors gained major clients like Mercedes-AMG and Valentino. In addition, the company is better placed against its key HCM peers, even in markets outside the U.S.

Despite the strength of its cloud business, the company’s shares have returned 9.0% over the past three months, lower than the Zacks categorized Computer Software industry average of 13.1%. The company also has had a choppy earnings surprise history, missing estimates twice for as many numbers of beats, over the trailing four quarters.

Further, the company’s earnings estimates also moved south over the past couple of months. Analysts have revised the Zacks Consensus Estimate for 2017 earnings downward over the past 60 days, from $3.79 to $3.66, which is a bearish sign. Seasonality in technology spending on part of clients, steep currency fluctuations and economic volatility in key Latin American markets are expected to thwart the growth of this Zacks Rank #4 (Sell) company.

Stocks to Consider

Better-ranked stocks in the broader computer & technology sector include Dassault Systemes SA (DASTY - Free Report) , Check Point Software Technologies Ltd. (CHKP - Free Report) and Aspen Technology, Inc. (AZPN - Free Report) . While Dassault and Check Point Software sport a Zacks Rank #1 (Strong Buy), Aspen Technology carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dassault Systemes, a globally recognized leader in CAD/CAM/CAE and PDM II markets, has a striking earnings surprise history for the trailing four quarters, beating estimates all through for an average positive surprise of 11%.

Check Point Software is a leading provider of policy-based enterprise security and traffic management solutions. The company has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 6%.

Aspen Technology is a recognized expert and leading provider of award-winning process optimization software and services. The company has beaten estimates consistently each time over the trailing four quarters, with an average positive surprise of 20.3%.

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