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Factors Likely to Decide Amdocs' (DOX) Fate in Q4 Earnings
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Amdocs (DOX - Free Report) is slated to release fourth-quarter fiscal 2022 results on Nov 8.
For the fourth quarter, Amdocs expects revenues between $1.145 billion and $1.185 billion. The Zacks Consensus Estimate for revenues is pegged at $1.17 billion, indicating a year-over-year increase of 7.2%. Our projection for the top line coincides with the Zacks Consensus Estimate.
Moreover, non-GAAP earnings are projected in the range of $1.26-$1.32 per share, whereas the consensus mark is pegged at $1.29 per share, suggesting an increase of 11.2% from the year-ago quarter’s reported figure. We project the company to report non-GAAP earnings of $1.28 per share in the fourth quarter.
Amdocs’ earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same in one, the average surprise being 6%.
Let’s see how things have shaped up before the upcoming announcement.
Amdocs’ fourth-quarter performance is expected to have benefited from continued deal wins from major telecom companies. The long-term strategic digital transformation partnership with T-Mobile has proven to be a consistent growth booster for the past few quarters. Contributions from this partnership are expected to have benefited Amdocs’ performance in the quarter under review.
Further, the demand for DOX’s cloud-managed services is on the rise from service provider customers to aid their technological transformations in the wave of 5G advancements. This is expected to get reflected in the upcoming quarterly results.
Moreover, the extension of managed services agreements with several customers over the last 12 months and partnerships with Capita plc to provide digital business systems are expected to have acted as tailwinds during the to-be-reported quarter.
However, a negative impact of unfavorable foreign currency exchange rates is likely to have weighed on the fourth-quarter top and bottom lines. Also, economic and political uncertainties are likely to have remained an overhang on Amdocs’ financials.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DOX this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though Amdocs currently carries a Zacks Rank of 2, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Salesforce (CRM - Free Report) , Cisco (CSCO - Free Report) and Analog Devices (ADI - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Salesforce is anticipated to report third-quarter fiscal 2023 results on Nov 29. The company carries a Zacks Rank #3 and an Earnings ESP of +7.13% at present.
The Zacks Consensus Estimate for Salesforce’s quarterly earnings is pegged at $1.21 per share, suggesting a year-over-year decline of 4.7%. Its quarterly revenues are estimated to increase 13.8% year over year to $7.81 billion.
Cisco carries a Zacks Rank #3 and an Earnings ESP of +1.46%. The company is slated to report first-quarter fiscal 2023 results on Nov 16. CSCO's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.8%.
For the first quarter, the Zacks Consensus Estimate for Cisco’s earnings is pegged at 84 cents per share, indicating a 2.4% year-over-year increase. Revenues are expected to grow 3.3% to $13.3 billion.
Analog Devices carries a Zacks Rank #3 and has an Earnings ESP of +1.10. The company will report its fourth-quarter fiscal 2022 results on Nov 22. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.9%.
The Zacks Consensus Estimate for Analog Devices’ fourth-quarter earnings stands at $2.58 per share, suggesting a whopping year-over-year increase of 49.1%. Revenues are estimated to grow 35.2% year over year to $3.16 billion.
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Factors Likely to Decide Amdocs' (DOX) Fate in Q4 Earnings
Amdocs (DOX - Free Report) is slated to release fourth-quarter fiscal 2022 results on Nov 8.
For the fourth quarter, Amdocs expects revenues between $1.145 billion and $1.185 billion. The Zacks Consensus Estimate for revenues is pegged at $1.17 billion, indicating a year-over-year increase of 7.2%. Our projection for the top line coincides with the Zacks Consensus Estimate.
Moreover, non-GAAP earnings are projected in the range of $1.26-$1.32 per share, whereas the consensus mark is pegged at $1.29 per share, suggesting an increase of 11.2% from the year-ago quarter’s reported figure. We project the company to report non-GAAP earnings of $1.28 per share in the fourth quarter.
Amdocs’ earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same in one, the average surprise being 6%.
Let’s see how things have shaped up before the upcoming announcement.
Amdocs Limited Price and EPS Surprise
Amdocs Limited price-eps-surprise | Amdocs Limited Quote
Factors to Consider
Amdocs’ fourth-quarter performance is expected to have benefited from continued deal wins from major telecom companies. The long-term strategic digital transformation partnership with T-Mobile has proven to be a consistent growth booster for the past few quarters. Contributions from this partnership are expected to have benefited Amdocs’ performance in the quarter under review.
Further, the demand for DOX’s cloud-managed services is on the rise from service provider customers to aid their technological transformations in the wave of 5G advancements. This is expected to get reflected in the upcoming quarterly results.
Moreover, the extension of managed services agreements with several customers over the last 12 months and partnerships with Capita plc to provide digital business systems are expected to have acted as tailwinds during the to-be-reported quarter.
However, a negative impact of unfavorable foreign currency exchange rates is likely to have weighed on the fourth-quarter top and bottom lines. Also, economic and political uncertainties are likely to have remained an overhang on Amdocs’ financials.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DOX this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though Amdocs currently carries a Zacks Rank of 2, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Salesforce (CRM - Free Report) , Cisco (CSCO - Free Report) and Analog Devices (ADI - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Salesforce is anticipated to report third-quarter fiscal 2023 results on Nov 29. The company carries a Zacks Rank #3 and an Earnings ESP of +7.13% at present.
CRM's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 18.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Salesforce’s quarterly earnings is pegged at $1.21 per share, suggesting a year-over-year decline of 4.7%. Its quarterly revenues are estimated to increase 13.8% year over year to $7.81 billion.
Cisco carries a Zacks Rank #3 and an Earnings ESP of +1.46%. The company is slated to report first-quarter fiscal 2023 results on Nov 16. CSCO's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.8%.
For the first quarter, the Zacks Consensus Estimate for Cisco’s earnings is pegged at 84 cents per share, indicating a 2.4% year-over-year increase. Revenues are expected to grow 3.3% to $13.3 billion.
Analog Devices carries a Zacks Rank #3 and has an Earnings ESP of +1.10. The company will report its fourth-quarter fiscal 2022 results on Nov 22. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.9%.
The Zacks Consensus Estimate for Analog Devices’ fourth-quarter earnings stands at $2.58 per share, suggesting a whopping year-over-year increase of 49.1%. Revenues are estimated to grow 35.2% year over year to $3.16 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.