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Amdocs (DOX) Q1 Earnings Meet, Revenues Miss Estimates

Amdocs Ltd.DOX reported first-quarter 2016 financial numbers wherein earnings of 79 cents a share were in line with the Zacks Consensus Estimate. However, on a GAAP basis, the company reported net income of $100.8 million or 66 cents per share compared with $131 million or 83 cents in the prior-year quarter.

Q1 Details

Amdocs' total revenue came in at $921.5 million, up 1.7% year over year but below the Zacks Consensus Estimate of $926 million. Twelve-month order backlog, at the end of the first quarter of fiscal 2016, was $3.09 billion against $3 billion in the prior-year period.

Amdocs posted gross margin of 35.4% in the reported quarter versus 36.7% in the year-ago quarter. Operating income stood at approximately $119.5 million, down 15.5% year over year, whereas operating margin was 13% versus 15.6% in the prior-year quarter.

Segment-Wise Results

Managed Service revenues totaled $487.6 million, up 4.4% year over year. Customer Experience Solution revenues came in at $894.4 million, a 1.4% rise from the year-earlier quarter figure. Meanwhile, Directory revenues grossed $27.1 million, up 13.4% year over year.

Geographically, North America generated $576.7 million, down 12.5% year over year. Europe recorded $128.9 million in revenues, up 20.6% year over year, while the Rest of the World contributed $215.9 million, up 53.9% year over year.

Liquidity

At the end of first-quarter 2016, Amdocs generated around $198.8 million in cash from operations compared with 208.4 million at the end of fiscal 2015. At the end of the said period, free cash flow stood at $160.5 million versus $171.7 million at the end of fiscal 2014. Meanwhile, at the end of the first quarter of 2016, Amdocs had approximately $1,185.9 million in cash, cash equivalents and short-term interest-bearing investments compared with $1,354 million at the end of fiscal 2015.

Financial Outlook

Management expects revenues in the range of $905-$945 million for the second quarter of fiscal 2016. Earnings per share, for the same period on a GAAP basis, are expected between 63 cents and 71 cents while non-GAAP earnings per share are projected in the 84-90 cent range.

Dividend Payments

Following the earnings announcement, Amdocs declared a cash dividend of 19.5 cents per share to be paid on Apr 15, 2016 to shareholders of record as of Mar 31, 2015.

Zacks Rank & Stocks to Consider

Amdocs currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry are Unisys Corporation UIS , Science Applications International Corporation SAIC and ServiceNow, Inc. NOW . All three companies sport a Zacks Rank #1 (Strong Buy).

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UNISYS (UIS): Free Stock Analysis Report

AMDOCS LTD (DOX): Free Stock Analysis Report

SERVICENOW INC (NOW): Free Stock Analysis Report

SCIENCE APP INT (SAIC): 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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