Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We reiterate our long-term Neutral recommendation on Amdocs Ltd. (DOX - Analyst Report). The company reported mixed financial results for the second quarter of fiscal 2013.

Why Keeping at Neutral?

Amdocs is performing well in the emerging markets of Asia and Latin America while facing a tough environment in Europe due to macroeconomic headwind. Amdocs’ sales opportunity in North America is more visible after the business with AT&T Inc. (T - Analyst Report) gained stabilization.

In the reported quarter, the company achieved key production milestones in the modernization of United States Cellular Corp. (USM - Analyst Report) and the Netherlands division of Vodafone Group plc. (VOD - Analyst Report).

Amdocs offers a portfolio of industry-leading technology integration products of managed services for large transformational projects. We believe that the long-term fundamentals of the company remain intriguing due to the transition of the telecom industry to converged IP solutions. Further, the company has a healthy balance sheet.

Amdocs recently launched its state-of-the-art CES 9 product suite. CES 9 is the industry leading fully-integrated platform of BSS, OSS and Network control. This platform will enable multi-channel customer care and real time full integration of devices and network across video, wireless, fixed-mobile converged and high-speed broadband Internet services.

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. In the last quarter, the company was negatively affected by $2 million of foreign exchange fluctuations. Furthermore,the recent consolidation trend in the U.S. telecom industry may act as a major concern for Amdocs.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

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 Zacks.com. 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
ANI PHARMACE ANIP 29.97 +17.30%
ATLAS FINANC AFH 14.57 +2.32%
FEDERATED NA FNHC 20.25 +1.91%
GREEN PLAINS GPRE 29.43 +1.66%
PIONEER ENER PES 14.06 +1.30%