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Amdocs (DOX) Earnings and Revenues Beat Estimates in Q3
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Amdocs Ltd. (DOX - Free Report) reported third-quarter fiscal 2016 (ended jun 30, 2016) results wherein earnings (on an adjusted basis) of 85 cents a share beat the Zacks Consensus Estimate of 81 cents. However, on a reported basis, the company’s earnings came in at 70 cents per share compared with 69 cents in the prior-year quarter.
Q3 Details
Amdocs’ total revenue came in at $930 million, up 2.4% year over year and also above the Zacks Consensus Estimate of $928 million. Twelve-month order backlog, at the end of the third quarter of fiscal 2016, was $3.11 billion compared with $3.01 billion in the prior-year quarter.
Operating income stood at approximately $159.8 million, down 2.9% year over year, whereas operating margin was 17.2% versus 17.1% in the prior-year quarter.
Segment-Wise Results
Managed Service revenues totaled $479.2 million, down 4.4% year over year. Customer Experience revenues came in at $930.1 million, a 0.6% rise from the year-earlier quarter figure. Meanwhile, Systems Directory revenues grossed $22.0 million, down 6.8% year over year.
Geographically, North America generated $591.8 million, up 0.9% year over year. Europe recorded $126.3 million in revenues, down 9.3% year over year, while the Rest of the World contributed $212.0 million, up 5.8% year over year.
Liquidity
At the end of the reported quarter, Amdocs garnered around $151 million in cash from operations compared with $190 million at the end of the same quarter last fiscal. At the end of the fiscal third quarter, free cash flow stood at $117 million compared with $190 million a year ago. Meanwhile, at the end of the quarter under review, Amdocs had approximately $1,124.9 million in cash, cash equivalents and short-term interest-bearing investments compared with $1,354 million at the end of fiscal 2015.
Financial Outlook
Management projects revenues in the range of $920–$960 million for the fourth quarter of fiscal 2016. Earnings per share, for the same period on a GAAP basis, are expected between 66 cents and 74 cents while non-GAAP earnings per share are projected in the 85–91 cent range. The Zacks Consensus Estimate for the fourth quarter stands at 88 cents which is within the guidance issued by the company.
For fiscal 2016, the company continues to expect earnings growth (on an adjusted basis) at the midpoint of the 3.5–7.5% range. The company still expects the top line to grow at a rate which is slightly below the midpoint of the range of 2% and 6 % (on a constant currency basis).
Following the earnings announcement, Amdocs declared a cash dividend of 19.5 cents per share to be paid on Oct 21, 2016, to shareholders of record as of Sep 30, 2016.
Zacks Rank & Stocks to Consider
Amdocs currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry are CDK Global Inc. , Barracuda Network, Inc. and Earthlink Holdings Corp. . All the companies sport a Zacks Rank #1 (Strong Buy).
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Amdocs (DOX) Earnings and Revenues Beat Estimates in Q3
Amdocs Ltd. (DOX - Free Report) reported third-quarter fiscal 2016 (ended jun 30, 2016) results wherein earnings (on an adjusted basis) of 85 cents a share beat the Zacks Consensus Estimate of 81 cents. However, on a reported basis, the company’s earnings came in at 70 cents per share compared with 69 cents in the prior-year quarter.
Q3 Details
Amdocs’ total revenue came in at $930 million, up 2.4% year over year and also above the Zacks Consensus Estimate of $928 million. Twelve-month order backlog, at the end of the third quarter of fiscal 2016, was $3.11 billion compared with $3.01 billion in the prior-year quarter.
Operating income stood at approximately $159.8 million, down 2.9% year over year, whereas operating margin was 17.2% versus 17.1% in the prior-year quarter.
Segment-Wise Results
Managed Service revenues totaled $479.2 million, down 4.4% year over year. Customer Experience revenues came in at $930.1 million, a 0.6% rise from the year-earlier quarter figure. Meanwhile, Systems Directory revenues grossed $22.0 million, down 6.8% year over year.
Geographically, North America generated $591.8 million, up 0.9% year over year. Europe recorded $126.3 million in revenues, down 9.3% year over year, while the Rest of the World contributed $212.0 million, up 5.8% year over year.
Liquidity
At the end of the reported quarter, Amdocs garnered around $151 million in cash from operations compared with $190 million at the end of the same quarter last fiscal. At the end of the fiscal third quarter, free cash flow stood at $117 million compared with $190 million a year ago. Meanwhile, at the end of the quarter under review, Amdocs had approximately $1,124.9 million in cash, cash equivalents and short-term interest-bearing investments compared with $1,354 million at the end of fiscal 2015.
Financial Outlook
Management projects revenues in the range of $920–$960 million for the fourth quarter of fiscal 2016. Earnings per share, for the same period on a GAAP basis, are expected between 66 cents and 74 cents while non-GAAP earnings per share are projected in the 85–91 cent range. The Zacks Consensus Estimate for the fourth quarter stands at 88 cents which is within the guidance issued by the company.
For fiscal 2016, the company continues to expect earnings growth (on an adjusted basis) at the midpoint of the 3.5–7.5% range. The company still expects the top line to grow at a rate which is slightly below the midpoint of the range of 2% and 6 % (on a constant currency basis).
AMDOCS LTD Price, Consensus and EPS Surprise
AMDOCS LTD Price, Consensus and EPS Surprise | AMDOCS LTD Quote
Dividend Payments
Following the earnings announcement, Amdocs declared a cash dividend of 19.5 cents per share to be paid on Oct 21, 2016, to shareholders of record as of Sep 30, 2016.
Zacks Rank & Stocks to Consider
Amdocs currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry are CDK Global Inc. , Barracuda Network, Inc. and Earthlink Holdings Corp. . All the companies sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>