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Descartes' Solutions Witness Steady Traction: Will the Stock Gain?
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The Descartes Systems Group Inc. (DSGX - Free Report) portfolio of solutions is gaining steady traction. DSGX recently announced that Brazil-based Solar Coca-Cola is utilizing its route execution and fleet performance management solution to enhance the last-mile delivery performance for more than 1,400 drivers across 44 distribution centers and 13 production facilities, covering 70% of Brazil.
Solar Coca-Cola is focused on improving its logistics processes through automation. Descartes’ solution has provided a unified “mobile-based platform” to manage daily routes for its drivers and supervisors. This solution continuously “resequences” routes based on real-time traffic, delivery windows and weather conditions, improving driver performance and giving supervisors better insight into distribution operations.
Moreover, drivers can use the same app to capture customer information directly at the point of delivery, while supervisors can track driver progress and status updates throughout the day, adding significant value to their high-service environment. Solar Coca-Cola added that such efficiency would be unattainable through manual processes, which are time-consuming and not scalable.
The Descartes Systems Group Inc. Price and Consensus
Descartes' route execution and fleet performance management solution, part of its broader routing, mobile and telematics suite, assists retail food and beverage distributors like Solar Coca-Cola in managing routes for optimal efficiency. It minimizes the impact of unforeseen events on customer service levels, mileage and costs by continually re-optimizing route plans based on real-time traffic data and other variables.
In early August, DSGX’s cloud-based transportation management system (TMS) solution was implemented by Nynas AB to automate communications across the customer order lifecycle. The TMS solution will enhance communication with carriers, freight forwarders, customs agents, independent inspectors and Nynas’ main storage hub, supporting diverse shipments across Europe, where the company mainly operates.
DSGX’s Gains From Healthy Uptake of Solutions & Buyouts
Momentum in real-time visibility, global trade intelligence, routing and scheduling solutions and e-commerce business is driving DSGX’s performance.
In the last reported quarter, Services revenues (contributed 91% to total revenues) amounted to $137.8 million, up 11% year over year. The uptick was primarily attributable to an increase in sales to an expanded customer base of global trade intelligence, routing and transportation management solutions.
DGSX has also been active on the acquisition front. Buyouts have aided the company’s growth by expanding its product portfolio and adding competence. Synergies arising from the acquisition of OCR and Thyme ASD, along with healthy momentum in services revenues, led to 11% year-over-year growth in total revenues in the fiscal first quarter. Also, acquisitions settled in fiscal 2024, including GroundCloud and Localz, favorably impacted revenue growth.
Based in Canada, Descartes provides software-as-a-service logistics solutions. Its platform combines a broad logistics network with extensive supply chain applications and global trade intelligence, ensuring timely and secure delivery of inventory, information, assets and people.
DSGX’S Zacks Rank & Stock Price Performance
At present, DSGX has a Zacks Rank #3 (Hold). Shares have gained 34.5% compared with the sub-industry’s growth of 22.1% in the past year.
Manhattan Associates delivered an earnings surprise of 26.6%, on average, in the trailing four quarters. In the last reported quarter, MANH pulled off an earnings surprise of 22.9%. The Zacks Consensus Estimate for MANH increased 9.2% in the past 60 days to $4.26.
ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.
Adobe delivered an earnings surprise of 2.7%, on average, in the trailing four quarters. In the last reported quarter, ADBE pulled off an earnings surprise of 2.1%. It has a long-term earnings growth expectation of 13%.
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Descartes' Solutions Witness Steady Traction: Will the Stock Gain?
The Descartes Systems Group Inc. (DSGX - Free Report) portfolio of solutions is gaining steady traction. DSGX recently announced that Brazil-based Solar Coca-Cola is utilizing its route execution and fleet performance management solution to enhance the last-mile delivery performance for more than 1,400 drivers across 44 distribution centers and 13 production facilities, covering 70% of Brazil.
Solar Coca-Cola is focused on improving its logistics processes through automation. Descartes’ solution has provided a unified “mobile-based platform” to manage daily routes for its drivers and supervisors. This solution continuously “resequences” routes based on real-time traffic, delivery windows and weather conditions, improving driver performance and giving supervisors better insight into distribution operations.
Moreover, drivers can use the same app to capture customer information directly at the point of delivery, while supervisors can track driver progress and status updates throughout the day, adding significant value to their high-service environment. Solar Coca-Cola added that such efficiency would be unattainable through manual processes, which are time-consuming and not scalable.
The Descartes Systems Group Inc. Price and Consensus
The Descartes Systems Group Inc. price-consensus-chart | The Descartes Systems Group Inc. Quote
Descartes' route execution and fleet performance management solution, part of its broader routing, mobile and telematics suite, assists retail food and beverage distributors like Solar Coca-Cola in managing routes for optimal efficiency. It minimizes the impact of unforeseen events on customer service levels, mileage and costs by continually re-optimizing route plans based on real-time traffic data and other variables.
In early August, DSGX’s cloud-based transportation management system (TMS) solution was implemented by Nynas AB to automate communications across the customer order lifecycle. The TMS solution will enhance communication with carriers, freight forwarders, customs agents, independent inspectors and Nynas’ main storage hub, supporting diverse shipments across Europe, where the company mainly operates.
DSGX’s Gains From Healthy Uptake of Solutions & Buyouts
Momentum in real-time visibility, global trade intelligence, routing and scheduling solutions and e-commerce business is driving DSGX’s performance.
In the last reported quarter, Services revenues (contributed 91% to total revenues) amounted to $137.8 million, up 11% year over year. The uptick was primarily attributable to an increase in sales to an expanded customer base of global trade intelligence, routing and transportation management solutions.
DGSX has also been active on the acquisition front. Buyouts have aided the company’s growth by expanding its product portfolio and adding competence. Synergies arising from the acquisition of OCR and Thyme ASD, along with healthy momentum in services revenues, led to 11% year-over-year growth in total revenues in the fiscal first quarter. Also, acquisitions settled in fiscal 2024, including GroundCloud and Localz, favorably impacted revenue growth.
Based in Canada, Descartes provides software-as-a-service logistics solutions. Its platform combines a broad logistics network with extensive supply chain applications and global trade intelligence, ensuring timely and secure delivery of inventory, information, assets and people.
DSGX’S Zacks Rank & Stock Price Performance
At present, DSGX has a Zacks Rank #3 (Hold). Shares have gained 34.5% compared with the sub-industry’s growth of 22.1% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Manhattan Associates, Inc. (MANH - Free Report) , ANSYS, Inc. (ANSS - Free Report) and Adobe Inc. (ADBE - Free Report) . MANH presently sports a Zacks Rank #1 (Strong Buy) each, whereas ANSS & ADBE carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Manhattan Associates delivered an earnings surprise of 26.6%, on average, in the trailing four quarters. In the last reported quarter, MANH pulled off an earnings surprise of 22.9%. The Zacks Consensus Estimate for MANH increased 9.2% in the past 60 days to $4.26.
ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.
Adobe delivered an earnings surprise of 2.7%, on average, in the trailing four quarters. In the last reported quarter, ADBE pulled off an earnings surprise of 2.1%. It has a long-term earnings growth expectation of 13%.