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.
During the conference call, the company announced that it has inked a deal to acquire Vubiquity Inc. against roughly $224 million. The buyout is likely to close by second-quarter fiscal 2018-end.
Earnings
Quarterly adjusted earnings came in at $1.06 per share, beating the Zacks Consensus Estimate of 97 cents. The bottom line also came in higher than the year-ago tally of 90 cents per share.
Revenues
Revenues in the reported quarter came in at $977.7 million, missing the Zacks Consensus Estimate of $979 million by a whisker. However, the top line came in 2.4% higher than the year-ago figure.
Top-Line Details
Customer Experience Systems revenues were $965.9 million in the reported quarter, up 3% year over year.Systems Directory revenues came in at $11.8 million, plunging 29.8% year over year.
Geographically, revenues from North America were $643 million, up 2.4% from the year-ago period. Europe recorded revenues of $133.7 million, up 12.8% year over year. Nonetheless, Rest of the World generated revenues of $201 million, down 3.5% year over year.
Cost of sales in the reported quarter was $643.2 million, up 3.6% year over year. Selling, distribution and administrative expenses totaled $118.7 million compared to $124.1 million incurred in the year-earlier period. Operating margin in the fiscal first quarter came in at 12.5%, contracting 20 bps year over year.
Balance Sheet & Cash Flow
Exiting the reported quarter, Amdocs had cash and cash equivalents of $965.9 million compared with 979.6 million recorded in the prior quarter.
In the first three months of fiscal 2018, the company generated net cash of $164.6 million from its operating activities compared to $168 million cash generated in the year-earlier period.
In the fiscal first quarter, Amdocs purchased property worth $51.8 million compared with $41.7 million property purchased at the end of first-quarter fiscal 2017.
During the reported quarter, the company purchased shares worth $120 million. Also, its board of directors has approved the payment of a quarterly dividend at an increased rate of 25 cents per share. The dividend will be paid on Apr 20 to shareholders on record as of Mar 30, 2018.
Outlook
Amdocs is poised to grow on the back of sturdy sales, robust backlog, well-planned acquisitions and strategic growth-focused investments. The company anticipates to report revenues in the range of $960-$1,000 million and adjusted earnings per share (EPS) in 91-97 cents per share in second-quarter fiscal 2018. The company reiterated its revenue and EPS growth view for fiscal 2018. For fiscal 2018, Amdocs expects adjusted EPS year-over-year growth of 4-8% on revenue growth of 0-4%.
Applied Materials, Inc. (AMAT - Free Report) has a Zacks Rank of 2. The company generated an average positive earnings surprise of 2.82% during the same time frame.
Canon, Inc. also holds a Zacks Rank of 2. The company pulled of an average positive earnings surprise of 17.90% over the preceding four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Amdocs (DOX) Beats on Q1 Earnings, Repeats FY18 EPS View
Amdocs Limited (DOX - Free Report) reported better-than-expected first-quarter fiscal 2018 (ended Dec 31, 2017) earnings.
During the conference call, the company announced that it has inked a deal to acquire Vubiquity Inc. against roughly $224 million. The buyout is likely to close by second-quarter fiscal 2018-end.
Earnings
Quarterly adjusted earnings came in at $1.06 per share, beating the Zacks Consensus Estimate of 97 cents. The bottom line also came in higher than the year-ago tally of 90 cents per share.
Revenues
Revenues in the reported quarter came in at $977.7 million, missing the Zacks Consensus Estimate of $979 million by a whisker. However, the top line came in 2.4% higher than the year-ago figure.
Top-Line Details
Customer Experience Systems revenues were $965.9 million in the reported quarter, up 3% year over year.Systems Directory revenues came in at $11.8 million, plunging 29.8% year over year.
Geographically, revenues from North America were $643 million, up 2.4% from the year-ago period. Europe recorded revenues of $133.7 million, up 12.8% year over year. Nonetheless, Rest of the World generated revenues of $201 million, down 3.5% year over year.
Amdocs Limited Price, Consensus and EPS Surprise
Amdocs Limited Price, Consensus and EPS Surprise | Amdocs Limited Quote
Margins
Cost of sales in the reported quarter was $643.2 million, up 3.6% year over year. Selling, distribution and administrative expenses totaled $118.7 million compared to $124.1 million incurred in the year-earlier period. Operating margin in the fiscal first quarter came in at 12.5%, contracting 20 bps year over year.
Balance Sheet & Cash Flow
Exiting the reported quarter, Amdocs had cash and cash equivalents of $965.9 million compared with 979.6 million recorded in the prior quarter.
In the first three months of fiscal 2018, the company generated net cash of $164.6 million from its operating activities compared to $168 million cash generated in the year-earlier period.
In the fiscal first quarter, Amdocs purchased property worth $51.8 million compared with $41.7 million property purchased at the end of first-quarter fiscal 2017.
During the reported quarter, the company purchased shares worth $120 million. Also, its board of directors has approved the payment of a quarterly dividend at an increased rate of 25 cents per share. The dividend will be paid on Apr 20 to shareholders on record as of Mar 30, 2018.
Outlook
Amdocs is poised to grow on the back of sturdy sales, robust backlog, well-planned acquisitions and strategic growth-focused investments. The company anticipates to report revenues in the range of $960-$1,000 million and adjusted earnings per share (EPS) in 91-97 cents per share in second-quarter fiscal 2018. The company reiterated its revenue and EPS growth view for fiscal 2018. For fiscal 2018, Amdocs expects adjusted EPS year-over-year growth of 4-8% on revenue growth of 0-4%.
Stocks to Consider
Some better-ranked stocks in the Zacks Categorized Computer and Technology Sectorare listed below:
AMTEK, Inc. (AME - Free Report) carries a Zacks Rank of 2 (Buy). The company pulled of an average positive earnings surprise of 4.14% in the last four quarters. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Applied Materials, Inc. (AMAT - Free Report) has a Zacks Rank of 2. The company generated an average positive earnings surprise of 2.82% during the same time frame.
Canon, Inc. also holds a Zacks Rank of 2. The company pulled of an average positive earnings surprise of 17.90% over the preceding four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>