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Infosys (INFY) to Enhance smart Europe GmbH D2C Business Model

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Infosys Limited (INFY - Free Report) entered a five-year partnership with smart Europe GmbH to improve the latter’s Direct-to-Customer (D2C) business model in Europe.

Based in Leinfelden-Echterdingen, Germany, smart Europe GmbH is a subsidiary of smart Automobile Co., Ltd. Notably, smart Automobile Co., Ltd was established through a collaboration between Mercedes-Benz and Geely Act Smart. Mercedes-Benz handles the design, while Geely is responsible for the development and production.

The EV automotive manufacturer, smart Europe GmbH, will benefit from Infosys’ portfolio of software, data and cloud investments. The collaboration will enhance data-driven customization and interaction for smart Europe GmbH’s current smart #1 and smart #3 models. This partnership will also enable the automotive manufacturer to employ a D2C sales strategy for selling electric vehicles in 15 European nations.

Infosys Limited Price and Consensus

 

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Infosys Limited price-consensus-chart | Infosys Limited Quote

Infosys will leverage its expertise in Machine Learning models, trusted processes, functional and technical expertise to streamline sales forecast, e-commerce processes and customer experience for smart Europe GmbH.

The newest deal with smart Europe GmbH follows other 2023 European deals, including partnerships with Stark Group, Danske Bank, Keytrade Bank, ABN AMRO and ng-voice GmbH. In the second quarter of 2024, Infosys signed eight large deals in Europe.

However, the company is facing a mixed bag of challenges. Its business is being affected by near-term uncertainties stemming from inflation and higher interest rates. Slow decision-making processes, along with softness in digital transformation programs and discretionary spending in the current uncertain macroeconomic environment, are hurting INFY’s volumes.

Zacks Rank and Stocks to Consider

Currently, Infosys carries a Zacks Rank #4 (Sell). Shares of the company have declined 9.4% year to date.

Some better-ranked stocks from the broader technology sector are NVIDIA (NVDA - Free Report) , NetEase (NTES - Free Report) and Dell Technologies (DELL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NVDA’s third-quarter fiscal 2024 earnings has been revised by 2 cents northward to $3.34 per share in the past 30 days. For fiscal 2024, earnings estimates have increased by 7 cents to $10.74 in the past 30 days.

NVIDIA's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 9.8%. Shares of NVDA have rallied 175.9% year to date.

The Zacks Consensus Estimate for NetEase's third-quarter 2024 earnings has been revised downward by a penny to $1.56 per share in the past 30 days. For fiscal 2024, earnings estimates have increased by 35 cents to $6.54 per share in the past 90 days.

NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 24.54%. Shares of NTES have surged 44.7% year to date.

The Zacks Consensus Estimate for DELL's third-quarter 2024 earnings has been revised upward by 11 cents to $1.47 per share in the past 60 days. For fiscal 2024, earnings estimates have increased by 3 cents to $6.33 per share in the past 30 days.

Dell’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 39.52%. Shares of DELL have climbed 60.4% year to date.

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