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Amdocs' (DOX) Vubiquity Platform Selected by Israel's Cellcom

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Amdocs Limited (DOX - Free Report) recently announced that the Israel-based telecommunications company, Cellcom, has selected Vubiquity, a part of Amdocs’ Media Division, to leverage new top-notch digital content for the viewers of Cellcom TV.

Per the renewed agreement, Amdocs will offer the telecom company a complete suite of content acquisition, curation, marketing and content management services. This will enhance the Cellcom TV viewers’ personalized digital experiences, giving them access to best-in-class linear and video-on-demand content options.

The latest deal instantiates Amdocs’ edge over creating unique personalized digital experiences for its client base while streaming competition escalates amid a volatile economic environment. 

 

Acquired in 2018, Amdocs' Vubiquity deals with licensing rights, royalty reconciliation and several other media services in multiple languages worldwide. The platform has continued to win important deals since its acquisition. In August, the company entered into a three-year expanded agreement with Oi, one of the largest telecom operators in Brazil, to provide an expanded catalog of subscription video-on-demand titles to consumers through this platform.

In April, Amdocs unveiled MetaVU, a Vubiquity solution that allows content providers and video distributors to better store, manage, augment, localize and distribute metadata. The solution provides a high-value, low-investment approach to metadata management, enabling a rich, unified consumer experience.

Currently, Amdocs' growth momentum is anticipated to continue, courtesy of its initiatives aimed at aiding digital, media, and network and cloud transformations of its clients. The company is expanding its global client base by signing long-term contracts and collaborating with major telecom industry players worldwide.

In July, the company collaborated with Unicard, a smart transport solutions provider, to provide an integrated ticketing solution to public transport passengers. Integrating Unicard's account-based ticketing system, Amdocs intends to develop a multi-modal "tap-in, tap-out" ticketing solution on its automated cloud-native payment platform. Such developments are likely to aid Amdocs in driving its top line.

However, the company is highly susceptible to foreign currency exchange rate risk. It expects foreign-exchange fluctuations to continue impacting net interest and other expense lines on a quarterly basis. Economic and political uncertainty remains an overhang on Amdocs’ financials.

Shares of Amdocs have gained 8.6% in the past year.

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 Celestica (CLS - Free Report) , Fabrinet (FN - Free Report) and Zscaler (ZS - Free Report) . While Celestica and Fabrinet flaunt a Zacks Rank #1 (Strong Buy), Zscaler carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

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 5.7% in the past year.

The Zacks Consensus Estimate for Fabrinet's second-quarter fiscal 2023 earnings has been revised 4 cents northward to $1.77 per share over the past seven days. For fiscal 2023, earnings estimates have improved by 17 cents to $7.12 per share in the past seven days.

FN’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 5.4%. Shares of the company have lost 2.6% in the past year.

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 66.2% in the past year.

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