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Amdocs (DOX) Earnings and Revenues Beat Estimates in Q2
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Amdocs Limited (DOX - Free Report) reported second-quarter fiscal 2022 non-GAAP earnings of $1.54 per share, which improved 36.3% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $1.24. The bottom line was significantly higher than the guided range of $1.22-$1.28.
Record revenues of $1.15 billion beat the consensus mark of $1.12 billion and came in line with the upper end of the guided range of $1.11-$1.15 billion. Compared with the year-ago quarter, revenues were up 9.2% on a reported basis and 10.1% on a constant currency basis.
Amdocs’ top-line performance was primarily driven by North America’s high activity levels among top consumers. However, foreign currency movements subdued the figure.
North America reported record revenues of $772 million (67.4% of total revenues), indicating a 13.7% year-over-year surge.
Europe revenues (12.9% of total revenues) of $147.2 million decreased 1.1%, year over year. Rest of the World revenues (19.7% of total revenues) grew 2.3% year over year to $225.9 million.
Managed services revenues jumped 4.5% year over year to $663.4 million. The company ended fiscal second-quarter 2022 with a 12-month backlog of $3.89 billion, up $0.06 billion sequentially and 9.9% year on year.
Non-GAAP research & development expenses, as a percentage of revenues, expanded 40 basis points (bps) on a year-over-year basis to 7.5%.
Non-GAAP selling, general & administrative expenses, as a percentage of revenues, increased 60 bps year over year to 11.1%.
Non-GAAP operating margin expanded 10 bps sequentially to 17.6%.
Balance Sheet and Cash Flow
Amdocs had cash and short-term investments of $856.4 million as of Mar 31, 2022, compared with $868.8 million as of Dec 31, 2021.
During second-quarter fiscal 2022, net cash provided by operating activities was $168.9 million, down from $204 million in the previous quarter and up from $119.7 million in the year-ago period. Free cash flow was $121.6 million compared with the previous quarter’s $146.9 million and the year-earlier quarter’s $70.5 million during the same time frame.
During the first six months of fiscal 2022, net cash provided by operating activities was $373 million, while free cash flow was $268.5 million.
During the fiscal second quarter, the company repurchased shares worth $130 million. Amdocs’ board approved the new increased quarterly cash dividend rate of 39.5 cents per share. The dividends will be paid out on Jul 29, 2022, to the shareholders of record as of Jun 30.
Guidance Update
For fiscal 2022, Amdocs now anticipates revenue growth of 5.2-7.2% on a reported basis, compared with the previous forecast of 3.4-7.4%. On a constant currency basis, revenues are projected to increase in the band of 8-10% year over year, compared with the earlier projection of 6-10%.
The updated fiscal 2022 outlook reflects an expected unfavorable foreign-currency impact of approximately 0.8% on a year-over-year basis compared with the previous forecast of 0.6%.
Adjusted earnings are estimated to grow between 7.3% and 10.3% compared with the prior projection of 6.3% and 10.3%.
For the third quarter of fiscal 2022, the company projects revenues between $1,140 million and $1,180 million and adjusted earnings in the range of $1.23-$1.29 per share. The outlook reflects an expected unfavorable foreign-currency impact of approximately $1 million.
Zacks Rank & Key Picks
Amdocs currently carries a Zacks Rank #3 (Hold). Shares of DOX have increased 5.9% in the past year.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have increased 10.7% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past seven days. For 2022, ACLS' earnings estimates have moved 11 cents north to $4.10 per share in the past seven days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have surged 49.5% in the past year.
The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised 4 cents upward to $2.12 per share over the past 60 days. For fiscal 2022, earnings estimates have moved 11 cents north to $8.43 per share in the past 60 days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have risen 4.1% in the past year.
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Amdocs (DOX) Earnings and Revenues Beat Estimates in Q2
Amdocs Limited (DOX - Free Report) reported second-quarter fiscal 2022 non-GAAP earnings of $1.54 per share, which improved 36.3% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $1.24. The bottom line was significantly higher than the guided range of $1.22-$1.28.
Record revenues of $1.15 billion beat the consensus mark of $1.12 billion and came in line with the upper end of the guided range of $1.11-$1.15 billion. Compared with the year-ago quarter, revenues were up 9.2% on a reported basis and 10.1% on a constant currency basis.
Amdocs’ top-line performance was primarily driven by North America’s high activity levels among top consumers. However, foreign currency movements subdued the figure.
Amdocs Limited Price, Consensus and EPS Surprise
Amdocs Limited price-consensus-eps-surprise-chart | Amdocs Limited Quote
Quarterly Details
North America reported record revenues of $772 million (67.4% of total revenues), indicating a 13.7% year-over-year surge.
Europe revenues (12.9% of total revenues) of $147.2 million decreased 1.1%, year over year. Rest of the World revenues (19.7% of total revenues) grew 2.3% year over year to $225.9 million.
Managed services revenues jumped 4.5% year over year to $663.4 million.
The company ended fiscal second-quarter 2022 with a 12-month backlog of $3.89 billion, up $0.06 billion sequentially and 9.9% year on year.
Non-GAAP research & development expenses, as a percentage of revenues, expanded 40 basis points (bps) on a year-over-year basis to 7.5%.
Non-GAAP selling, general & administrative expenses, as a percentage of revenues, increased 60 bps year over year to 11.1%.
Non-GAAP operating margin expanded 10 bps sequentially to 17.6%.
Balance Sheet and Cash Flow
Amdocs had cash and short-term investments of $856.4 million as of Mar 31, 2022, compared with $868.8 million as of Dec 31, 2021.
During second-quarter fiscal 2022, net cash provided by operating activities was $168.9 million, down from $204 million in the previous quarter and up from $119.7 million in the year-ago period. Free cash flow was $121.6 million compared with the previous quarter’s $146.9 million and the year-earlier quarter’s $70.5 million during the same time frame.
During the first six months of fiscal 2022, net cash provided by operating activities was $373 million, while free cash flow was $268.5 million.
During the fiscal second quarter, the company repurchased shares worth $130 million. Amdocs’ board approved the new increased quarterly cash dividend rate of 39.5 cents per share. The dividends will be paid out on Jul 29, 2022, to the shareholders of record as of Jun 30.
Guidance Update
For fiscal 2022, Amdocs now anticipates revenue growth of 5.2-7.2% on a reported basis, compared with the previous forecast of 3.4-7.4%. On a constant currency basis, revenues are projected to increase in the band of 8-10% year over year, compared with the earlier projection of 6-10%.
The updated fiscal 2022 outlook reflects an expected unfavorable foreign-currency impact of approximately 0.8% on a year-over-year basis compared with the previous forecast of 0.6%.
Adjusted earnings are estimated to grow between 7.3% and 10.3% compared with the prior projection of 6.3% and 10.3%.
For the third quarter of fiscal 2022, the company projects revenues between $1,140 million and $1,180 million and adjusted earnings in the range of $1.23-$1.29 per share. The outlook reflects an expected unfavorable foreign-currency impact of approximately $1 million.
Zacks Rank & Key Picks
Amdocs currently carries a Zacks Rank #3 (Hold). Shares of DOX have increased 5.9% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Avnet (AVT - Free Report) , Axcelis Technologies (ACLS - Free Report) and Analog Devices (ADI - Free Report) . While Avnet sports a Zacks Rank #1 (Strong Buy), Axcelis and Analog Devices carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have increased 10.7% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past seven days. For 2022, ACLS' earnings estimates have moved 11 cents north to $4.10 per share in the past seven days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have surged 49.5% in the past year.
The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised 4 cents upward to $2.12 per share over the past 60 days. For fiscal 2022, earnings estimates have moved 11 cents north to $8.43 per share in the past 60 days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have risen 4.1% in the past year.