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Amdocs (DOX) Earnings & Revenues Surpass Estimates in Q1

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Amdocs Limited DOX 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 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 and Sprint was a dampener.

Performance in North America was driven by stable activity trends at AT&T T 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.


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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