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Amdocs (DOX) Misses Q1 Earnings, Revenues Increase Y/Y

Amdocs Ltd.'sDOX reported first-quarter fiscal 2017 earnings (on an adjusted basis) of 82 cents a share which missed the Zacks Consensus Estimate by 2 cents. On a GAAP basis, the company's earnings came in at $97.8 million or 66 cents per share during the quarter

Amdocs Limited Price, Consensus and EPS Surprise

Amdocs Limited Price, Consensus and EPS Surprise | Amdocs Limited Quote

Quarterly Performance

Amdocs' total revenue came in at $954.7 million, up 3.6% year over year. The improvement in revenues resulted from impressive execution across multiple dimensions of its business and continuous project wins. The top line was in line with the Zacks Consensus Estimate. The company's 12-month order backlog at the end of the fiscal first quarter was $3.18 million, up $10 million from the prior quarter. Non-GAAP operating income was approximately $164.1 million, up 4.6% year over year.

Non-GAAP operating margin for the quarter was 17.2%, an increase of 10 basis points from the fourth fiscal quarter of 2016 and within the higher end of its long-term target range of 16.4% to 17.4%.

Segmental Results

Managed Service revenues totaled $494.2 million, compared with $487.6 million in the year-ago quarter. Customer Experience revenues were $937.9 million, compared with $894.4 million in the year-earlier quarter. Systems Directory revenues were $16.8 million compared with $27.1 million in the year-ago period.

Geographically, revenues from North America were $628 million, up 8.9% from the year-ago period. Europe recorded revenues of $118.5 million, down 8.1% year over year. Rest of the World generated revenues of $208.2 million, down 3.6% year over year.The company's revenues were above the midpoint of its guidance.

Liquidity

Free cash flow for the first three months of fiscal 2017 was $127 million. Cash and cash equivalents and short-term interest-bearing investments compared with $940.3 million, while cash flow from operations for the quarter was $168 million. The company repurchased $80 million shares during the first fiscal quarter.

Financial Outlook

Management expects revenues in the range of $940-$980 million in the second-quarter fiscal 2017. Earnings per share (EPS) on a GAAP basis are expected between 66 cents and 74 cents, while non-GAAP EPS are projected in the 90-96 cents range.

For fiscal 2017, the company remains on track to deliver non-GAAP EPS year-over-year growth of 4.5% to 8.5%.

Stocks to Consider

Currently, Amdocs carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Barracuda Networks, Inc. CUDA , Science Applications International Corporation SAIC and SecureWorks Corp. SCWX . 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 .

Barracuda has long-term earnings growth expectations of 21.31% and is currently trading at a forward P/E of 67.11x.

SecureWorks has long-term earnings growth expectations of 25% and it beat estimates twice in the trailing four quarters with an average positive surprise of 34.21%.

Science Applications has long-term earnings growth expectations of 5% and is currently trading at a forward P/E of 24.20x.

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Amdocs Limited (DOX): Free Stock Analysis Report

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC): Free Stock Analysis Report

Barracuda Networks, Inc. (CUDA): Free Stock Analysis Report

SecureWorks Corp. (SCWX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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