Back to top

Analyst Blog

We reiterate our long-term Neutral recommendation on Amdocs Ltd. (DOX - Analyst Report). The company reported mixed financial results for the fourth quarter of fiscal 2013. While earnings per share were exactly in line with the Zacks Consensus Estimate, revenues slightly fell below.

Why the Reiteration?

Amdocs is well positioned in the market as carriers sell bundled and converged IP-based network solutions to their subscribers. These services include video, wireless, fixed-mobile converged and high-speed broadband Internet access solutions. Amdocs offers integrated customer management systems, which are essential for carriers to prevent customer churn. Huge opportunities exist for Amdocs as more telecom companies started deploying 3G/4G networks.

The company has the largest customer base and the broadest product line in the industry, including a full suite of end-to-end solutions for both Business Support Systems (BSS) and Operations Support Systems (OSS). Business in North America was comparatively strong. Alongside, the emerging Asia Pacific markets are witnessing nearly double-digit revenue growth.

Nevertheless, Amdocs is exposed to the global economic downturn, particularly those events that affect the telecommunications industry. The macroeconomic scenario is yet to recover completely. In addition, delay in business transformation on the part of the carriers may reduce capital spending. Economic and political uncertainty in Europe may jeopardize the company’s financials, going forward. Furthermore, as the company is operating globally, it is also exposed to foreign currency exchange rate risk.

Other Stocks to Consider

Amdocs currently carries a Zacks Rank #2 (Buy). Other stocks in the same industry which are also doing well include CoStar Group Inc. (CSGP - Snapshot Report), EPAM Systems Inc. (EPAM - Snapshot Report) and Infosys Ltd. (INFY - Analyst Report). All three stocks currently have a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%