Yahoo Finance Wipro (WIT) to Accelerate Hanesbrands' Digital Transformation
Wipro WIT recently secured a contract from its long-term partner, Hanesbrands HBI, to improve the latter’s profitability and business growth through the acceleration of digital transformation.
In this deal, Wipro is set to implement cybersecurity measures, automation and artificial intelligence to optimize HBI’s operations, improve product lifecycle processes and shorten time-to-market.
As part of the deal, Wipro is responsible for defining the client’s cloud roadmap and supporting the integration of business functions to help Hanesbrands optimize operations. WIT will also bring in next-generation tools and services to improve the client’s product lifecycle processes and deliver faster time-to-market.
Shares of Wipro have lost 0.6% year to date compared with the Zacks Business - Software Services Industry’s decline of 5.4%.
Wipro Limited Price and Consensus
Wipro Limited price-consensus-chart | Wipro Limited Quote
Wipro Benefits From Cloud and AI Clients
Wipro has been benefiting from a constant inflow of contracts. So far in 2024, the company has secured major deals from Nokia NOK, Nutanix NTNX, Manpower Group, Brothers Technology and Desjardins.
Wipro and NTNX together launched Nutanix-focused business unit that is focused on helping the mutual clients of both companies to leverage multi-cloud facilities while growing the Nutanix Cloud investments.
On the other hand, Wipro migrated Manpower’s data to Microsoft’s Azure cloud platform. WIT also signed a multibillion-dollar deal with Nokia in which it is set to develop an AI-powered and cloud-based platform for Nokia’s employee base.
Additionally, Wipro is investing heavily in enhancing its AI capabilities. Earlier this year, it announced to invest $1 billion in AI over the next three years. It has also collaborated with Zscaler, Microsoft, Intelligent Business Machines, Kognitos and Hewlett Packard Enterprise to improve its AI capabilities.
Wipro Faces Macroeconomic Challenges
Wipro is affected by the ongoing weakness in sectors, including banking, financial services, manufacturing and communication, where it serves most of its clients. Furthermore, the company has been encountering slow decision-making processes, softness in digital transformation programs and discretionary spending in the current uncertain macroeconomic environment, which is hurting deal conversions.
Higher costs and compensation revision with higher variable pay and incentives are weighing on its margins. Currency volatility between the Indian rupee and the U.S. dollar is a concern.
The Zacks Consensus Estimate for the fiscal 2025 revenues is pegged at $10.67 billion, indicating a year-over-year decline of 1.4%. The consensus mark for earnings is pegged at 27 cents per share, indicating growth of 8% year over year.
Currently, Wipro carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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