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Descartes' Aljex TMS Chosen by Giltner to Streamline AR & Payments

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The Descartes Systems Group Inc. (DSGX - Free Report) recently announced that Giltner Logistics will use Descartes Aljex transportation management system (TMS), which is integrated with Upwell’s advanced accounts receivable (AR) technology to improve its AR process, speeding up payments and managing cash flow. Giltner is a major asset-backed third-party logistics provider (3PL).

The cloud-based Descartes Aljex TMS is a scalable solution that helps freight brokers of all sizes boost productivity, earnings and customer service. Freight brokers and third-party logistics companies can accelerate their cash cycle by utilizing the integration between Descartes Aljex with Upwell's automated AR solution. Faster payments are made possible by reducing the time spent on manual invoicing and collections.

Descartes highlighted that timely customer payments are essential for preserving liquidity and enhancing sustainable growth. The company’s advanced technology platform, combined with a comprehensive partner ecosystem, allows freight brokers and 3PLs to simplify financial management, protect profit margins and boost profitability by reducing administrative complexities and streamlining workflows.

Robust TMS Adoption Bodes Well for DSGX

Descartes is witnessing strong growth for its TMS solution. In December 2024, the company deepened its partnership with Europe-based IDS to streamline operations, save costs and bolster customer experience. IDS, which has expertise in non-asset transport management and fourth-party logistics, is leveraging Descartes’ premium TMS to deliver value to shippers and carriers while meeting the demands of modern supply chain management and compliance.

As the logistics landscape continues to evolve, solutions like Descartes’ TMS are likely to play a pivotal role in driving efficiency, sustainability and growth for businesses worldwide. In August 2024, Nynas AB adopted the TMS software to automate communications across the customer order lifecycle. It improves coordination with carriers, freight forwarders, customs agents, independent inspectors and Nynas’ primary storage hub. Additionally, it supports the efficient handling of diverse shipments across Europe, where the company primarily operates.

In the last reported quarter, the company’s revenues increased 17% year over year to $168.8 million, beating the Zacks Consensus Estimate by 3.5%. DSGX recorded 10% organic growth in the fiscal third quarter and expanded its solution portfolio with five acquisitions in 2024, including MCP and Sellercloud. GroundCloud added $3.5 million in low-margin revenues by providing AI cameras after a FedEx contractor mandate.

However, ongoing global economic uncertainty, geopolitical tensions and supply chain disruptions weigh on DSGX’s performance.

DSGX’s Zacks Rank & Stock Price Performance

Descartes currently carries a Zacks Rank #4 (Sell). Shares of the company have jumped 8.3% in the past six months against with the industry's decline of 2.8%.

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Stocks to Consider

Some better ranked stocks from the broader technology space are BlackBerry Limited (BB - Free Report) , InterDigital, Inc. (IDCC - Free Report) and Intrusion Inc. (INTZ - Free Report) . BB and IDCC presently sport a Zacks Rank #1 (Strong Buy), whereas INTZ carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

BlackBerry’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 131.25%. In the last reported quarter, BB delivered an earnings surprise of 200%. Its shares have surged 56.6% in the past six months.

The Zacks Consensus Estimate for InterDigital’s 2024 earnings per share is pegged at $15.19, unchanged in the past 30 days. IDCC earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 163.7%. The company’s long-term earnings growth rate is 15%. Its shares have jumped 44.2% in the past six months.

INTZ’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 43.06%. In the last reported quarter, Intrusion delivered an earnings surprise of 16.67%. Its shares have surged 66.7% in the past six months.

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