Amdocs (DOX) Beats Q3 Earnings Estimates, Revenues In Line
Amdocs Ltd. DOX reported healthy third-quarter fiscal 2017 earnings (on an adjusted basis) of 96 cents a share which topped the Zacks Consensus Estimate of 89 cents.
On a GAAP basis, the company’s earnings came in at $119.3 million or 81 cents per share compared with $105.1 million or 71 cents in the prior-year quarter.
Quarterly Performance
Amdocs’ total revenue came in at $967 million, up 3.9% year over year. The improvement in revenues resulted from impressive execution across multiple dimensions of its business and continuous project wins. The top line matched the Zacks Consensus Estimate.
The company’s 12-month order backlog at the end of the fiscal third quarter was $3.22 billion, up $10 million from the prior quarter. Non-GAAP operating income was approximately $167.2 million, up 4.6% year over year. Non-GAAP operating margin for the quarter was 17.3%.
Segmental Results
Managed Service revenues totaled $496.3 million compared with $479.2 million in the year-ago quarter. Customer Experience revenues were $954.8 million compared with $908.1 million in the year-earlier quarter. Systems Directory revenues were $11.9 million compared with $22 million in the year-ago period.
Geographically, revenues from North America were $637.9 million, up 7.8% from the year-ago period. Europe recorded revenues of $125.2 million, down 0.87% year over year. Rest of the World generated revenues of $203.6 million, down 4% year over year.
Liquidity
Free cash flow for the fiscal third quarter was $134 million. Cash and cash equivalents and short-term interest-bearing investments were $963 million. Cash flow from operations for the first nine months of the fiscal year was $437.1 million. The company repurchased $90 million shares during the fiscal third quarter.
Financial Outlook
Management expects revenues in the range of $955–$995 million in the fourth-quarter fiscal 2017. Earnings per share (EPS) on a GAAP basis are expected between 68 cents and 76 cents, while non-GAAP EPS are projected in the 91–97 cents range.
For fiscal 2017, the company expects to deliver non-GAAP EPS year-over-year growth of 5.5% to 7.5%.
Amdocs Limited Price, Consensus and EPS Surprise
Amdocs Limited Price, Consensus and EPS Surprise | Amdocs Limited Quote
Zacks Rank & Stocks to Consider
Currently, Amdocs carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Baozun Inc. BZUN, EPAM Systems, Inc. EPAM and CoStar Group, Inc. CSGP. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Baozun is currently trading at a forward P/E of 54.15x.
EPAM Systems has long-term earnings growth expectations of 20%. It beat estimates twice in the trailing four quarters with an average positive surprise of 33.41%.
CoStar Group has long-term earnings growth expectations of 15% and is currently trading at a forward P/E of 74.13x.
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