Global technology company, Pitney Bowes Inc.PBI , recently announced that Brimbank City Council in Victoria has deployed the company's proprietary offering, Spectrum Single Customer View solution, to improve quality of service to citizens.
Spectrum Single Customer View solution
Brimbank City Council - one of the largest metropolitan councils in Australia - is pioneering the deployment of Spectrum Single Customer View solution to develop better communication with its citizens. This offering from Pitney Bowes will enable the city council to boost efficiency, reduce waste and gain better insights about citizens. So far, the council has been suffering from problems, including disparate data and higher inefficiency, which prevented it from having a holistic view of customer demands.
Pitney Bowes' Spectrum offers benefits, such as mobile-responsive web site, payment gateway and master data management solution, to aid the council in developing efficient customer delivery models. This project is scheduled in two phases. In the first phase, three of Brimbank's main corporate systems, offering data cleansing, data quality and analytics, were integrated with Spectrum.
In phase two, six other corporate systems of the council will be brought under Spectrum's wing to fortify its existing service delivery model. Pitney Bowes believes that most organizations lack the infrastructure to go beyond technical CRM system or e-commerce interactions. Pitney Bowes' Spectrum can join fragmented knowledge about customers, across systems, and deliver a rich content as well as uncover timely and actionable insights.
Pitney Bowes on Wobbly Grounds
Despite lucrative contract wins and diligent restructuring efforts, shares of Pitney Bowes have recorded an average negative return of 13.2% in the past six months, comparing unfavorably with that of the Zacks categorized Office Automation & Equipment industry's average of 3.5%. In addition, the company has an unimpressive earnings surprise history, recording an average negative surprise of 10.9%, for the trailing four quarters, missing estimates each time.
In the past two months, the earnings estimates have moved south, highlighting bearish broker sentiments. Pitney Bowes has witnessed three downward estimate revisions compared with just none upward, for the past 30 days. This has led to the Zacks Consensus Estimate for fiscal 2016 earnings being revised downward from $1.76 cents to $1.75 cents per share.
Much of the brokers' negative sentiment is attributable to a host of macroeconomic issues, which the company has been grappling with over the past few quarters. Pitney Bowes has been unable to generate a tangible positive impact on its software business despite taking multiple measures pertaining to software business transformation. Also, foreign currency fluctuations and sluggish global economic conditions pose as significant headwinds. Moreover, a rise in the company's operating and marketing expenses are likely to put pressure on margins of this Zacks Rank #5 (Strong Sell) company in the near term.
Stocks to Consider
Some better-ranked stocks in the broader computer & technology sector include Cirrus Logic Inc. CRUS , Aspen Technology, Inc. AZPN and Guidance Software, Inc. GUID While Cirrus Logic sports a Zacks Rank #1 (Strong Buy), Aspen Technology and Guidance Software carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Cirrus Logic is a premier supplier of high performance analog circuits and advanced mixed-signal chip solutions. The company beat earnings estimates thrice in the trailing four quarters, with an average beat of 53.7%.
Aspen Technology deals in process optimization software and services. It boasts a remarkable average surprise of 23.6% for the trailing four quarters, having surpassed estimates strongly in each of them.
Guidance Software, an industry leader in digital investigative solutions, also has an impressive earnings history. The company has beaten estimates in all four trailing quarters, with an average surprise of 18.6%.
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