We reaffirm our Neutral recommendation on
) following its better-than-expected financial results for the
fourth quarter of fiscal 2012. Net earnings easily toped the
Zacks Consensus Estimate. The company is doing well in the
emerging markets of Asia and Latin America and performing
moderately in Europe, despite facing severe economic
Amdocs' sales opportunity in North America is more visible now
after stabilization of business with
) and renewal of long-term contracts with several leading telecom
and cable TV operators. The company offers a portfolio of
industry-leading technology integration products of managed
services for large-scale transformational project. The long-term
fundamentals of the company remain intriguing due to the
transition of the broader telecom industry to converged IP
solutions. Meanwhile, the stock price has moved up by nearly 23%
in the last year and we believe Amdocs is currently fairly
Amdocs offers integrated customer management systems, which is
essential for carriers in order to prevent customer churn. There
are huge opportunities that exist with Amdocs as more telecom
companies started deploying 3G and 4G networks. Furthermore,
investment in the emerging markets will further drive its
top-line and bottom-line growth.
Amdocs has the largest customer base and the broadest product
line in the industry, including a full suite of end-to-end
solutions for both Business Support Systems (BSS) and Operations
Support Systems (OSS). Business in North America was
comparatively strong with Europe, showing signs of improvement.
Alongside, the emerging Asia Pacific markets are witnessing
double-digit revenue growth. Total order backlog was $2,790
million at the end of fiscal 2012.
AMDOCS LTD (DOX): Free Stock Analysis Report
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