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Amdocs (DOX) Earnings & Revenues Surpass Estimates in Q1
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Amdocs Limited (DOX - Free Report) reported first-quarter fiscal 2020 results, wherein both top and bottom lines beat estimates.
Quarterly non-GAAP earnings per share came in at $1.06, up from 98 cents in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate by 1%. The figure came within the company’s guided range of $1.02-$1.08.
Revenues for the quarter came in at $1.04 billion, improving 3% year over year. The top line also came within the company’s guided range of $1.015-$1.055 billion and beat the consensus mark by 1%.
Sequential growth in demand from North America and solid growth in the Rest of the World and Europe drove the results. Moreover, continued addition of new customers and strong project execution boosted revenues. Also, a positive impact of nearly $3 million sequentially from foreign currency movements was a tailwind.
Region-wise, revenues from North America (63.5% of total revenues) were $662.1 million, up 0.2% from the year-ago quarter. Notably, Amdocs signed a multi-year deal with television studio MGM. However, the delayed merger of T-Mobile (TMUS - Free Report) and Sprint (S - Free Report) was a dampener.
Performance in North America was driven by stable activity trends at AT&T (T - Free Report) and healthy activity levels of many customers in the border region.
Europe (14.8%) recorded revenues of $154.7 million, up 5.9%. Rest of the World (21.6%) generated revenues of $225.2 million, up 9.6%.
Managed services revenues of $579.7 million grew 10.3%.
Twelve-month backlog, which includes anticipated revenues related to contracts, estimated revenues from managed services contracts, letters of intent, maintenance and estimated on-going support activities, came in at $3.52 billion during the quarter, up $30 million from the prior quarter.
Operating Metrics
The company incurred non-GAAP operating expenses of $864 million, up 3.2% from the year-ago quarter.
Non-GAAP operating income increased 1.8% to $177.9 million.
Balance Sheet & Cash Flow
Cash and cash equivalents as of Dec 31, 2019, were $485.9 million, up from $471.6 million in the previous quarter.
Cash flow from operating activities was $163.9 million.
During the fiscal first quarter, the company repurchased shares worth $90 million. Also, its board of directors recently approved the payment of a quarterly dividend of $0.3275 per share. The dividend will be paid out on Apr 24, 2020.
Outlook
For second-quarter fiscal 2020, Amdocs expects revenues of $1.035-$1.075 billion, assuming approximately a $2-million sequential positive impact from foreign currency fluctuations.
Non-GAAP earnings per share of $1.03-$1.09 are expected for the fiscal second quarter.
For fiscal 2020, the company expects revenues to grow 2.5-5.5% year over year, with TTS contributing a little more than 1%.
Amdocs expects non-GAAP earnings per share growth of 3-7% year over year.
The company currently carries a Zacks Rank #3 (Hold).
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Amdocs (DOX) Earnings & Revenues Surpass Estimates in Q1
Amdocs Limited (DOX - Free Report) reported first-quarter fiscal 2020 results, wherein both top and bottom lines beat estimates.
Quarterly non-GAAP earnings per share came in at $1.06, up from 98 cents in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate by 1%. The figure came within the company’s guided range of $1.02-$1.08.
Revenues for the quarter came in at $1.04 billion, improving 3% year over year. The top line also came within the company’s guided range of $1.015-$1.055 billion and beat the consensus mark by 1%.
Sequential growth in demand from North America and solid growth in the Rest of the World and Europe drove the results. Moreover, continued addition of new customers and strong project execution boosted revenues. Also, a positive impact of nearly $3 million sequentially from foreign currency movements was a tailwind.
Amdocs Limited Price, Consensus and EPS Surprise
Amdocs Limited price-consensus-eps-surprise-chart | Amdocs Limited Quote
Quarter Details
Region-wise, revenues from North America (63.5% of total revenues) were $662.1 million, up 0.2% from the year-ago quarter. Notably, Amdocs signed a multi-year deal with television studio MGM. However, the delayed merger of T-Mobile (TMUS - Free Report) and Sprint (S - Free Report) was a dampener.
Performance in North America was driven by stable activity trends at AT&T (T - Free Report) and healthy activity levels of many customers in the border region.
Europe (14.8%) recorded revenues of $154.7 million, up 5.9%. Rest of the World (21.6%) generated revenues of $225.2 million, up 9.6%.
Managed services revenues of $579.7 million grew 10.3%.
Twelve-month backlog, which includes anticipated revenues related to contracts, estimated revenues from managed services contracts, letters of intent, maintenance and estimated on-going support activities, came in at $3.52 billion during the quarter, up $30 million from the prior quarter.
Operating Metrics
The company incurred non-GAAP operating expenses of $864 million, up 3.2% from the year-ago quarter.
Non-GAAP operating income increased 1.8% to $177.9 million.
Balance Sheet & Cash Flow
Cash and cash equivalents as of Dec 31, 2019, were $485.9 million, up from $471.6 million in the previous quarter.
Cash flow from operating activities was $163.9 million.
During the fiscal first quarter, the company repurchased shares worth $90 million. Also, its board of directors recently approved the payment of a quarterly dividend of $0.3275 per share. The dividend will be paid out on Apr 24, 2020.
Outlook
For second-quarter fiscal 2020, Amdocs expects revenues of $1.035-$1.075 billion, assuming approximately a $2-million sequential positive impact from foreign currency fluctuations.
Non-GAAP earnings per share of $1.03-$1.09 are expected for the fiscal second quarter.
For fiscal 2020, the company expects revenues to grow 2.5-5.5% year over year, with TTS contributing a little more than 1%.
Amdocs expects non-GAAP earnings per share growth of 3-7% year over year.
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>