Breaking News
0

Amdocs (DOX) Q3 Earnings Top Estimates, Revenues Up Y/Y

By Zacks Investment ResearchStock MarketsAug 07, 2019 10:06PM ET
www.investing.com/analysis/amdocs-dox-q3-earnings-top-estimates-revenues-up-yy-200453073
Amdocs (DOX) Q3 Earnings Top Estimates, Revenues Up Y/Y
By Zacks Investment Research   |  Aug 07, 2019 10:06PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Amdocs Limited (NASDAQ:DOX) reported third-quarter fiscal 2019 results, wherein the top line narrowly missed estimates but the bottom line beat the same.

Quarterly non-GAAP earnings came in at $1.19 per share, up from $1.03 in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate of $1.11. The figure came above the company’s guided range of $1.08 to $1.14 per share.

Revenues for the reported quarter came in at $1.024 billion, marginally missing the consensus estimate of $1.03 billion but improving 2.2% year over year. The top line also came within the company’s guided the range of $1.005-$1.045 billion.

Continued flow of new customers, strong project execution and strong growth in managed services drove revenues. However, a negative impact of nearly $3 million year over year in foreign currency movements was a headwind.

Notably, Amdocs announced the acquisition of TTS Wireless to strengthen its capabilities in open cloud and 5G network.

Quarter Details

Region wise, revenues from North America (62.2% of total revenues) were $634.2 million, up 1.6% from the year-ago quarter driven by digital modernization requirements of many of Amdocs’ communications, Pay TV and media customers. Europe (14.8%) recorded revenues of $151 million, up 1.6%. Rest of the World (13%) generated revenues of $234.5 million, up 6.8%.

The North America region witnessed sequential revenue growth, driven by stable activity trends at AT&T (NYSE:T) and healthy activity levels at many customers in the border region.

Strong growth in Amdocs’ managed services business was driven by the continued ramp up of managed transformation activities for customers like PLDT (NYSE:PHI) and Infineon (OTC:IFNNY) . It is combining the deployment of large-scale data transformation projects with operational benefits of its managed services model.

Moreover, strong traction was seen at Amdocs Media where the company continued the integration of media assets to meet the rapidly evolving content monetization needs of traditional service providers and media studios. Along this line, Amdocs signed a managed service agreement for distribution of 3D video-on-demand services for new logo.

During the quarter, Amdocs worked with T-Mobile and Sprint, assuming the planned merger proceeds.

Operating Metrics

The company incurred non-GAAP operating expenses of $847.4 million, up 2.3% from the year-ago quarter.

Non-GAAP operating income increased 2.1% to $177.3 million.

Balance Sheet & Cash Flow

During the fiscal third quarter, the company repurchased shares worth $89 million. Also, its board of directors recently approved the payment of a quarterly dividend of 28 cents per share. The dividend will be paid out on Oct 25, 2019.

Outlook

For fourth-quarter fiscal 2019, Amdocs expects revenues in the range of $1.015-$1.055 billion, assuming approximately $2 million sequential positive impact from foreign currency fluctuations, and a partial quarter revenue contribution from the TTS Wireless buyout.

Non-GAAP earnings per share in the band of $1.04 to $1.10 are expected for the fiscal fourth quarter. No impact of the acquisition of TTS Wireless on Amdocs’ non-GAAP earnings is expected in the quarter.

For fiscal 2019, the company raised its revenue guidance on a reported basis. It now expects revenues to grow 2.4-3.4% year over year compared with 1.8-3.8% rise expected earlier.

Amdocs also revised its revenue guidance on a constant currency basis. It expects revenue growth between 3.6% and 4.6% compared with 3-5% projected earlier. This guidance takes into account 1.2% year-over-year negative impact of foreign exchange fluctuations.

The company now expects non-GAAP earnings per share growth of 6.2-7.8% year over year, up from the earlier guided range of 4.5-8.5% rise.

Amdocs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Biggest Tech Breakthrough in a Generation

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 (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>



Amdocs Limited (DOX): Free Stock Analysis Report

AT&T Inc. (T): Free Stock Analysis Report

Infineon Technologies AG (IFNNY): Free Stock Analysis Report

PLDT Inc. (PHI): Free Stock Analysis Report

Original post

Zacks Investment Research
Amdocs (DOX) Q3 Earnings Top Estimates, Revenues Up Y/Y
 
Amdocs (DOX) Q3 Earnings Top Estimates, Revenues Up Y/Y

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email