We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Amdocs Ltd.’s (DOX - Free Report) reported first-quarter fiscal 2017 earnings (on an adjusted basis) of 82 cents a share which missed the Zacks Consensus Estimate by 2 cents. On a GAAP basis, the company’s earnings came in at $97.8 million or 66 cents per share during the quarter
Amdocs’ total revenue came in at $954.7 million, up 3.6% year over year. The improvement in revenues resulted from impressive execution across multiple dimensions of its business and continuous project wins. The top line was in line with the Zacks Consensus Estimate. The company’s 12-month order backlog at the end of the fiscal first quarter was $3.18 million, up $10 million from the prior quarter. Non-GAAP operating income was approximately $164.1 million, up 4.6% year over year.
Non-GAAP operating margin for the quarter was 17.2%, an increase of 10 basis points from the fourth fiscal quarter of 2016 and within the higher end of its long-term target range of 16.4% to 17.4%.
Segmental Results
Managed Service revenues totaled $494.2 million, compared with $487.6 million in the year-ago quarter. Customer Experience revenues were $937.9 million, compared with $894.4 million in the year-earlier quarter. Systems Directory revenues were $16.8 million compared with $27.1 million in the year-ago period.
Geographically, revenues from North America were $628 million, up 8.9% from the year-ago period. Europe recorded revenues of $118.5 million, down 8.1% year over year. Rest of the World generated revenues of $208.2 million, down 3.6% year over year.The company’s revenues were above the midpoint of its guidance.
Liquidity
Free cash flow for the first three months of fiscal 2017 was $127 million. Cash and cash equivalents and short-term interest-bearing investments compared with $940.3 million, while cash flow from operations for the quarter was $168 million. The company repurchased $80 million shares during the first fiscal quarter.
Financial Outlook
Management expects revenues in the range of $940–$980 million in the second-quarter fiscal 2017. Earnings per share (EPS) on a GAAP basis are expected between 66 cents and 74 cents, while non-GAAP EPS are projected in the 90–96 cents range.
For fiscal 2017, the company remains on track to deliver non-GAAP EPS year-over-year growth of 4.5% to 8.5%.
Barracuda has long-term earnings growth expectations of 21.31% and is currently trading at a forward P/E of 67.11x.
SecureWorks has long-term earnings growth expectations of 25% and it beat estimates twice in the trailing four quarters with an average positive surprise of 34.21%.
Science Applications has long-term earnings growth expectations of 5% and is currently trading at a forward P/E of 24.20x.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Amdocs (DOX) Misses Q1 Earnings, Revenues Increase Y/Y
Amdocs Ltd.’s (DOX - Free Report) reported first-quarter fiscal 2017 earnings (on an adjusted basis) of 82 cents a share which missed the Zacks Consensus Estimate by 2 cents. On a GAAP basis, the company’s earnings came in at $97.8 million or 66 cents per share during the quarter
Amdocs Limited Price, Consensus and EPS Surprise
Amdocs Limited Price, Consensus and EPS Surprise | Amdocs Limited Quote
Quarterly Performance
Amdocs’ total revenue came in at $954.7 million, up 3.6% year over year. The improvement in revenues resulted from impressive execution across multiple dimensions of its business and continuous project wins. The top line was in line with the Zacks Consensus Estimate. The company’s 12-month order backlog at the end of the fiscal first quarter was $3.18 million, up $10 million from the prior quarter. Non-GAAP operating income was approximately $164.1 million, up 4.6% year over year.
Non-GAAP operating margin for the quarter was 17.2%, an increase of 10 basis points from the fourth fiscal quarter of 2016 and within the higher end of its long-term target range of 16.4% to 17.4%.
Segmental Results
Managed Service revenues totaled $494.2 million, compared with $487.6 million in the year-ago quarter. Customer Experience revenues were $937.9 million, compared with $894.4 million in the year-earlier quarter. Systems Directory revenues were $16.8 million compared with $27.1 million in the year-ago period.
Geographically, revenues from North America were $628 million, up 8.9% from the year-ago period. Europe recorded revenues of $118.5 million, down 8.1% year over year. Rest of the World generated revenues of $208.2 million, down 3.6% year over year.The company’s revenues were above the midpoint of its guidance.
Liquidity
Free cash flow for the first three months of fiscal 2017 was $127 million. Cash and cash equivalents and short-term interest-bearing investments compared with $940.3 million, while cash flow from operations for the quarter was $168 million. The company repurchased $80 million shares during the first fiscal quarter.
Financial Outlook
Management expects revenues in the range of $940–$980 million in the second-quarter fiscal 2017. Earnings per share (EPS) on a GAAP basis are expected between 66 cents and 74 cents, while non-GAAP EPS are projected in the 90–96 cents range.
For fiscal 2017, the company remains on track to deliver non-GAAP EPS year-over-year growth of 4.5% to 8.5%.
Stocks to Consider
Currently, Amdocs carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Barracuda Networks, Inc. , Science Applications International Corporation (SAIC - Free Report) and SecureWorks Corp. (SCWX - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Barracuda has long-term earnings growth expectations of 21.31% and is currently trading at a forward P/E of 67.11x.
SecureWorks has long-term earnings growth expectations of 25% and it beat estimates twice in the trailing four quarters with an average positive surprise of 34.21%.
Science Applications has long-term earnings growth expectations of 5% and is currently trading at a forward P/E of 24.20x.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>