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Amdocs (DOX) Q4 Earnings & Revenues Match Estimates, Up Y/Y
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Amdocs Limited (DOX - Free Report) reported fourth-quarter fiscal 2022 non-GAAP earnings of $1.29 per share, which matched the Zacks Consensus Estimate while improving 11.2% from the year-ago quarter’s earnings of $1.16 per share. The bottom line was in line with the midpoint of the guided range of $1.26-$1.32.
Record revenues of $1.17 billion matched the Zacks Consensus Estimate and came in slightly above the midpoint of the guided range of $1,145-$1.185 billion. Compared with the year-ago quarter, revenues were up 7.3% on a reported basis and 9.5% 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.
Shares of DOX have improved 9.2% in the past year.
North America reported record revenues of $794 million (68.1% of total revenues), indicating a 9.9% year-over-year increase.
Europe revenues (12.6% of total revenues) of $146.4 million increased 0.2% year over year. Rest of the World revenues (19.3% of total revenues) fell 0.2% year over year to $225.7 million.
Managed services revenues jumped 12% year over year to $714.6 million.
The company ended fourth-quarter fiscal 2022 with a 12-month backlog of $3.97 billion, up $0.08 billion sequentially and 7.6% year on year.
Non-GAAP research & development expenses, as a percentage of revenues, expanded 70 basis points (bps) on a year-over-year basis to 8.1%.
Non-GAAP selling, general & administrative expenses, as a percentage of revenues, decreased 60 bps year over year to 10.3%.
Non-GAAP operating margin expanded 10 bps sequentially to 17.6%.
Balance Sheet and Cash Flow
Amdocs had cash and short-term investments of $573.4 million as of Sep 30, 2022 compared with $856.4 million as of Mar 31, 2022.
During fourth-quarter fiscal 2022, net cash provided by operating activities was $216.9 million, up from $168.9 million in the previous quarter and $199.7 million in the year-ago period. Free cash flow was $135 million compared with the previous quarter’s $121.6 million and the year-earlier quarter’s $138.8 million during the same time frame.
During fiscal 2022, net cash provided by operating activities was $757 million while free cash flow was $530 million.
During the fiscal fourth quarter, the company repurchased shares worth $108 million. Amdocs’ board approved the new increased quarterly cash dividend rate of 39.5 cents per share. The dividends will be paid out on Jan 27, 2023, to shareholders of record as of Dec 30.
Full-Year Highlights
Amdocs reported record revenues of $4.58 billion in full fiscal 2022, up 10.3% year over year on a constant currency basis and 6.7% on a reported basis.
Non-GAAP diluted earnings were $5.30 per share, indicating an increase of 10.2% year over year.
Guidance 2023
For fiscal 2023, Amdocs anticipates revenue growth of 4-8% on a reported basis while on a constant currency basis, revenues are projected to increase in the band of 6-10% year over year.
The updated fiscal 2022 outlook reflects an expected unfavorable foreign-currency impact of approximately 2% on a year-over-year basis compared with the previous forecast of 0.8%.
Adjusted earnings are estimated to grow between 8% and 12% compared with the prior projection of 7.3% and 10.3%.
For the first quarter of fiscal 2023, the company projects revenues between $1,155 million and $1,195 million and adjusted earnings in the range of $1.29-$1.35 per share. The outlook reflects an expected unfavorable foreign-currency impact of approximately $7 million.
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Amdocs (DOX) Q4 Earnings & Revenues Match Estimates, Up Y/Y
Amdocs Limited (DOX - Free Report) reported fourth-quarter fiscal 2022 non-GAAP earnings of $1.29 per share, which matched the Zacks Consensus Estimate while improving 11.2% from the year-ago quarter’s earnings of $1.16 per share. The bottom line was in line with the midpoint of the guided range of $1.26-$1.32.
Record revenues of $1.17 billion matched the Zacks Consensus Estimate and came in slightly above the midpoint of the guided range of $1,145-$1.185 billion. Compared with the year-ago quarter, revenues were up 7.3% on a reported basis and 9.5% 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.
Shares of DOX have improved 9.2% in the past year.
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 $794 million (68.1% of total revenues), indicating a 9.9% year-over-year increase.
Europe revenues (12.6% of total revenues) of $146.4 million increased 0.2% year over year. Rest of the World revenues (19.3% of total revenues) fell 0.2% year over year to $225.7 million.
Managed services revenues jumped 12% year over year to $714.6 million.
The company ended fourth-quarter fiscal 2022 with a 12-month backlog of $3.97 billion, up $0.08 billion sequentially and 7.6% year on year.
Non-GAAP research & development expenses, as a percentage of revenues, expanded 70 basis points (bps) on a year-over-year basis to 8.1%.
Non-GAAP selling, general & administrative expenses, as a percentage of revenues, decreased 60 bps year over year to 10.3%.
Non-GAAP operating margin expanded 10 bps sequentially to 17.6%.
Balance Sheet and Cash Flow
Amdocs had cash and short-term investments of $573.4 million as of Sep 30, 2022 compared with $856.4 million as of Mar 31, 2022.
During fourth-quarter fiscal 2022, net cash provided by operating activities was $216.9 million, up from $168.9 million in the previous quarter and $199.7 million in the year-ago period. Free cash flow was $135 million compared with the previous quarter’s $121.6 million and the year-earlier quarter’s $138.8 million during the same time frame.
During fiscal 2022, net cash provided by operating activities was $757 million while free cash flow was $530 million.
During the fiscal fourth quarter, the company repurchased shares worth $108 million. Amdocs’ board approved the new increased quarterly cash dividend rate of 39.5 cents per share. The dividends will be paid out on Jan 27, 2023, to shareholders of record as of Dec 30.
Full-Year Highlights
Amdocs reported record revenues of $4.58 billion in full fiscal 2022, up 10.3% year over year on a constant currency basis and 6.7% on a reported basis.
Non-GAAP diluted earnings were $5.30 per share, indicating an increase of 10.2% year over year.
Guidance 2023
For fiscal 2023, Amdocs anticipates revenue growth of 4-8% on a reported basis while on a constant currency basis, revenues are projected to increase in the band of 6-10% year over year.
The updated fiscal 2022 outlook reflects an expected unfavorable foreign-currency impact of approximately 2% on a year-over-year basis compared with the previous forecast of 0.8%.
Adjusted earnings are estimated to grow between 8% and 12% compared with the prior projection of 7.3% and 10.3%.
For the first quarter of fiscal 2023, the company projects revenues between $1,155 million and $1,195 million and adjusted earnings in the range of $1.29-$1.35 per share. The outlook reflects an expected unfavorable foreign-currency impact of approximately $7 million.
Zacks Rank & Other Key Picks
Amdocs currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader Computer and Technology sector are Zscaler (ZS - Free Report) , Celestica (CLS - Free Report) and Okta (OKTA - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by 15 cents to $1.18 per share in the past 60 days.
ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 66% in the past year.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 16 cents up to $1.86 per share in the past 30 days.
CLS' earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 11.8%. Shares of the company have declined 4.3% in the past year.
The Zacks Consensus Estimate for Okta's third-quarter fiscal 2023 loss has been revised 3 cents northward to 24 cents per share over the past 90 days. For fiscal 2023, loss estimates have improved by 3 cents to 72 cents per share in the past 60 days.
OKTA’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 45.5%. Shares of the company have plunged 82.2% in the past year.