What's in the Offing for Amdocs (DOX) This Earnings Season?
Amdocs DOX is slated to release third-quarter fiscal 2022 results on Aug 3.
For the third quarter, Amdocs expects revenues between $1.14 billion and $1.18 billion. The Zacks Consensus Estimate for revenues is pegged at $1.16 billion, indicating a year-over-year increase of 8.9%. Our projection for the top line coincides with the Zacks Consensus Estimate.
Moreover, non-GAAP earnings are projected in the range of $1.23-$1.29 per share, whereas the consensus mark is pegged at $1.26 per share, suggesting a decline of 6.7% from the year-ago quarter’s reported figure. We project the company to report non-GAAP earnings of $1.25 per share in the third quarter.
Amdocs’ earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same in one, the average surprise being 9.4%.
Let’s see how things have shaped up before the upcoming announcement.
Amdocs Limited Price and EPS Surprise
Amdocs Limited price-eps-surprise | Amdocs Limited Quote
Factors to Consider
Amdocs’ third-quarter performance is expected to have benefited from continued deal wins from major telecom companies. The demand for DOX’s cloud-managed services is on the rise from service provider customers to aid their technological transformations in the wave of 5G advancements. This is expected to get reflected in upcoming quarterly results.
Further, the long-term strategic digital transformation partnership with T-Mobile has proven to be a consistent growth booster for the past few quarters. Contributions from this partnership are expected to have benefited Amdocs’ performance in the quarter under review.
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 of unfavorable foreign currency exchange rates is likely to have weighed on the third-quarter top and bottom lines. Also, economic and political uncertainties are likely to have remained an overhang on Amdocs’ financials.
What Our Model Says
Our proven model does not conclusively 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 3 and has an Earnings ESP of 0.00%. 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, MRC Global MRC, Alcon ALC and Grocery Outlet GO have the right combination of elements to post an earnings beat in their upcoming releases.
MRC Global is slated to report second-quarter 2022 results on Aug 8. The company sports a Zacks Rank #1 and an Earnings ESP of +30.27% at present. MRC's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while matching the same in one, the average surprise being 140.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MRC’s quarterly earnings is pegged at 25 cents per share, suggesting a whopping year-over-year surge of 212.5%. Its quarterly revenues are estimated to increase 23.4% year over year to $846.5 million.
Alcon sports a Zacks Rank #1 and an Earnings ESP of +1.08%. The company is expected to report second-quarter 2022 results on Aug 16. ALC's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.4%.
For the second quarter, the Zacks Consensus Estimate for Alcon’s earnings is pegged at 55 cents per share, indicating a 1.8% year-over-year decline. However, revenues are expected to grow 4.4% to $2.19 billion.
Grocery Outlet carries a Zacks Rank #2 and has an Earnings ESP of +5.62. The company is anticipated to report its second-quarter 2022 results on Aug 9. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.8%.
The Zacks Consensus Estimate for GO’s second-quarter earnings stands at 24 cents per share, suggesting a year-over-year increase of 4.4%. Grocery Outlet anticipates revenues of $859.6 million, which suggests growth of 10.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amdocs Limited (DOX) : Free Stock Analysis Report
Alcon (ALC) : Free Stock Analysis Report
MRC Global Inc. (MRC) : Free Stock Analysis Report
Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
