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Amdocs (DOX) to Report Q2 Earnings: What's in the Cards?

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Amdocs (DOX - Free Report) is slated to release second-quarter 2021 results on May 12.

For the second quarter, revenues are expected between $1.015 billion and $1.055 billion. The Zacks Consensus Estimate for revenues is pegged at $1.040 billion, indicating a year-over-year decline of 1%.

Moreover, non-GAAP earnings are projected at $1.09-$1.15 per share, whereas the consensus mark is pegged at $1.14 per share, suggesting an improvement of 5.56% from the year-ago quarter’s reported figure.

Amdocs’ earnings beat estimates in the trailing four quarters, the average surprise being 2.45%.

Let’s see how things have shaped up prior to the upcoming announcement.

Amdocs Limited Price and EPS Surprise

Amdocs Limited Price and EPS Surprise

Amdocs Limited price-eps-surprise | Amdocs Limited Quote

Factors to Consider

Amdocs’ second-quarter performance is expected to have benefited from continued deal wins with major telecom companies. Notably, demand for the company’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, a positive sequential tailwind of approximately $4 million from foreign exchange fluctuations is expected to have boosted the top line in the second quarter.

Further, the long-term strategic digital transformation partnership with T-Mobile (T) has proven to be a consistent growth booster for the past few quarters. Moreover, in the last quarter, the company signed a new multi-year deal with T-Mobile, further strengthening the partnership. The contributions from this partnership are expected to have benefited Amdocs’ performance in the quarter under review.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Amdocs this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Amdocs currently has a Zacks Rank of 3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:

Facebook, Inc. (FB - Free Report) has an Earnings ESP of +1.25% and currently, a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CACI International (CACI - Free Report) has an Earnings ESP of +4.86% and a Zacks Rank of 2, at present.

Apple Inc. (AAPL - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank of 2, currently.

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