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Amdocs (DOX) Q4 Earnings Top Estimates, Revenues Miss

Amdocs Ltd.DOX reported mixed fourth-quarter 2015 financial numbers wherein earnings of 79 cents a share outpaced the Zacks Consensus Estimate by a penny. However, on a GAAP basis, the company reported net income of $91.1 million or 59 cents per share compared with $100.5 million or 63 cents in the prior-year quarter.

Amdocs (DOX) - Earnings Surprise | FindTheCompany

Q4 Details

Amdocs' total revenue came in at $927 million, up 3% year over year but below the Zacks Consensus Estimate of $933 million. Twelve-month order backlog, at the end of fiscal 2015, was $3.08 billion against $3 billion in the prior-year period.

Amdocs posted gross margin of 34.9% in the reported quarter against 35.4% in the year-ago quarter. Operating income stood at approximately $109.7 million, down 13% year over year, whereas operating margin was 11.8% versus 14% in the prior-year quarter.

Segment-Wise Results

Managed Service revenues totaled $466.6 million, up 6.9% year over year. Customer Experience Solution revenues came in at $899.4 million, a 3.2% rise from the year-earlier quarter's figure. Meanwhile, Directory revenues grossed $27.4 million, down 4.9% year over year.

Geographically, North America generated $626.6 million, down 5.4% year over year. Europe recorded $115.3 million in revenues, up 9.5% year over year, while the Rest of the World contributed $184.9 million, up 39.8% year over year.

Financial Details

At the end of fiscal 2015, Amdocs generated around $772.6 million in cash from operations compared with 709.3 million at the end of fiscal 2014. At the end of the said period, free cash flow stood at $652.5 million versus $597.7 million at the end of fiscal 2014. Meanwhile, at the end of fiscal 2015, Amdocs had approximately $1,354 million in cash, cash equivalents and short-term interest-bearing investments compared with $1,424.5 million at the end of fiscal 2014.

Financial Outlook

Management expects revenues in the range of $905-$945 million for the first quarter of fiscal 2016. Earnings per share, for the same period on a GAAP basis, are expected between 59 cents and 67 cents while non-GAAP earnings per share are projected in the 82-88 cents range.

Dividend Payments

Following the earnings announcement, Amdocs declared a cash dividend of 17 cents per share to be paid on Jan 15, 2016 to shareholders of record as of Dec 31, 2015. Moreover, the company hiked its dividend by 14.7% to 19.5 cents per share. The company expects to pay the dividend in Apr 2016, subject to approval by shareholders in the annual general meeting to be held in Feb 2016.

Zacks Rank & Stocks to Consider

Amdocs currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry are Acxiom Corporation ACXM , CDW Corporation CDW and ServiceNow, Inc. NOW . All three companies carry a Zacks Rank #2 (Buy).

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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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