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Amdocs (DOX) to Report Q1 Earnings: What's in the Offing?

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·4 min read
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Amdocs DOX is slated to release first-quarter fiscal 2022 results on Feb 1.

For the first quarter, revenues are expected between $1.08 billion and $1.12 billion. The Zacks Consensus Estimate for revenues is pegged at $1.10 billion, indicating a year-over-year increase of 1.3%.

Moreover, non-GAAP earnings are projected in the range of $1.15-$1.21 per share, whereas the consensus mark is pegged at $1.19 per share, suggesting an improvement of 2.6% from the year-ago quarter’s reported figure.

Amdocs’ earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 3.6%.

Let’s see how things have shaped up prior to the upcoming announcement.

Amdocs Limited Price and EPS Surprise

Amdocs Limited Price and EPS Surprise
Amdocs Limited Price and EPS Surprise

Amdocs Limited price-eps-surprise | Amdocs Limited Quote

Factors Likely to Impact Q1 Results

Amdocs’ first-quarter performance is expected to have benefited from continued deal wins from major telecom companies. Demand for DOX’s cloud-managed services is on a rise from service provider customers to aid their technological transformations in the wave of 5G advancements. This is expected to get reflected in the upcoming quarterly results.

One of its latest deal wins includes a Tier 1 service provider in Spain. In October 2021, it partnered with VEON to deliver innovative digital services to Uzbekistan and Kazakhstan customers. Such deals are anticipated to have boosted Amdocs’ first-quarter performance.

Moreover, the extension of managed services agreements with several customers over the last 12 months and partnerships with Capita plc to provide digital business systems are expected to have acted as tailwinds during the to-be-reported quarter.

However, a negative impact from the unfavorable foreign currency exchange rates is likely to have weighed on the first quarter’s top and bottom lines. Also, economic and political uncertainties remain an overhang on Amdocs’ financials.

What Our Model Says

Our proven model does not predict an earnings beat for DOX this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Amdocs currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of +0.42%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Advanced Micro Devices AMD, Apple AAPL and Alphabet GOOGL have the right combination of elements to post an earnings beat in their upcoming releases.

Advanced Micro Devices carries a Zacks Rank #2 and has an Earnings ESP of +3.47%. The company is scheduled to report fourth-quarter 2021 results on Feb 1. Advanced Micro Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AMD’s fourth-quarter earnings is pegged at 75 cents per share, indicating year-over-year growth of 44.2%. The consensus mark for revenues stands at $4.52 billion, suggesting a year-over-year increase of 39.4%.

Apple is slated to report first-quarter fiscal 2022 results on Jan 27. The company carries a Zacks Rank #3 and has an Earnings ESP of +2.89% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 22.3%.

The Zacks Consensus Estimate for Apple’s quarterly earnings is pegged at $1.89 per share, suggesting a year-over-year improvement of 12.5%. AAPL’s quarterly revenues are estimated to increase 6% year over year to $118.1 billion.

Alphabet currently carries a Zacks Rank #3 and has an Earnings ESP of +7.33%. The company is slated to report its fourth-quarter 2021 results on Feb 1. Alphabet’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.6%.

The Zacks Consensus Estimate for Alphabet’s fourth-quarter earnings stands at $26.69 per share, implying a year-over-year increase of 19.7%. GOOGL is estimated to report revenues of $59.3 billion, which suggests growth of 27.8% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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