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Why Is Amdocs (DOX) Up 4.2% Since the Last Earnings Report?
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It has been about a month since the last earnings report for Amdocs Limited (DOX - Free Report) . Shares have added about 4.2% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Amdocs Misses Q1 Earnings, Revenues Increase Y/Y
Amdocs reported first-quarter fiscal 2017 earnings (on an adjusted basis) of $0.82 a share which missed the Zacks Consensus Estimate by $0.02. On a GAAP basis, the company’s earnings came in at $97.8 million or $0.66 per share during the quarter.
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 $0.66 and $0.74, while non-GAAP EPS are projected in the $0.90–$0.96 range.
For fiscal 2017, the company remains on track to deliver non-GAAP EPS year-over-year growth of 4.5% to 8.5%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, Amdocs' stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.
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Why Is Amdocs (DOX) Up 4.2% Since the Last Earnings Report?
It has been about a month since the last earnings report for Amdocs Limited (DOX - Free Report) . Shares have added about 4.2% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Amdocs Misses Q1 Earnings, Revenues Increase Y/Y
Amdocs reported first-quarter fiscal 2017 earnings (on an adjusted basis) of $0.82 a share which missed the Zacks Consensus Estimate by $0.02. On a GAAP basis, the company’s earnings came in at $97.8 million or $0.66 per share during the quarter.
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 $0.66 and $0.74, while non-GAAP EPS are projected in the $0.90–$0.96 range.
For fiscal 2017, the company remains on track to deliver non-GAAP EPS year-over-year growth of 4.5% to 8.5%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Amdocs Limited Price and Consensus
Amdocs Limited Price and Consensus | Amdocs Limited Quote
VGM Scores
At this time, Amdocs' stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.