We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Amdocs (DOX) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Amdocs Limited (DOX - Free Report) reported fourth-quarter fiscal 2020 non-GAAP earnings of $1.23 per share that beat the Zacks Consensus Estimate by 3.4% and increased 13.9% year over year.
Revenues of $1.05 billion also surpassed the consensus mark by 1.8% and were up 2.2% year over year. At constant currency (cc), revenues increased 1.8%.
Quarterly Details
North America revenues (64.7% of total revenues) grew 5.8% year over year to $681.6 million in the reported quarter. Moreover, Europe revenues (15.7% of total revenues) of $165.3 million increased 5.9% year over year.
However, Rest of the World revenues (19.6% of total revenues) declined 10.4% year over year to $206 million.
Managed services revenues (58% of total revenues) climbed 4.7% year over year to $610.5 million.
The company ended the quarter with a 12-month backlog of $3.62 billion, up 3.7% year over year.
Meanwhile, research & development expenses as percentage of revenues increased 40 basis points (bps) on a year-over-year basis to 7.1%.
However, selling, general & administrative expenses as percentage of revenues decreased 220 bps year over year to 9.7%.
Operating margin contracted 10 bps year over year to 17.2%.
Balance Sheet and Cash Flow
Amdocs had cash and cash equivalents of $983.9 million as of Sep 30, 2020, up from $1.19 billion on Jun 30, 2020.
Cash flow from operating activities was $204.7 million, up from $186.7 million recorded in the previous quarter and $213.6 million in the year-ago quarter.
Free cash flow was $145.1 million compared with the previous quarter’s $145.4 million and $179.3 million reported in the year-ago quarter.
During fiscal fourth quarter, the company repurchased shares worth $91 million. Amdocs’ board of directors approved the payment of a quarterly dividend of $0.3275 per share. The dividends will be paid out on Jan 22, 2021.
Amdocs’ board also approved a 10% increase in quarterly cash dividend payment to 36 cents per share.
Key Developments
Amdocs completed the acquisition of Openet during the reported quarter. The company also won a contract from AT&T (T - Free Report) which selected Openet’s 5G solution to quickly launch and monetize new 5G services on the cloud.
Moreover, it signed a new multi-year strategic agreement with Amazon’s (AMZN - Free Report) cloud arm AWS to bring its cloud-native BSS offerings and wide range of services to jointly address the rapidly growing cloud market.
Moreover, Amdocs announced the divestiture of OpenMarket for approximately $300 million cash with Infobip.
Guidance
For the first quarter of fiscal 2021, revenues are expected between $1.055 billion and $1.095 billion.
Non-GAAP earnings are projected to be $1.09-$1.15 per share.
Amdocs expects fiscal 2021 revenues to grow between 4% and 8% year over year. At cc, revenues are expected to grow in the 3.5-7.5% range. Openet is expected to contribute 1.5% growth, while favorable forex is likely to add 0.5%.
Adjusted earnings are estimated to grow between 5% and 9%.
The company expects free cash flow to be roughly $470 million.
NVIDIA is set to report quarterly results on Nov 18.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Amdocs (DOX) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Amdocs Limited (DOX - Free Report) reported fourth-quarter fiscal 2020 non-GAAP earnings of $1.23 per share that beat the Zacks Consensus Estimate by 3.4% and increased 13.9% year over year.
Revenues of $1.05 billion also surpassed the consensus mark by 1.8% and were up 2.2% year over year. At constant currency (cc), revenues increased 1.8%.
Quarterly Details
North America revenues (64.7% of total revenues) grew 5.8% year over year to $681.6 million in the reported quarter. Moreover, Europe revenues (15.7% of total revenues) of $165.3 million increased 5.9% year over year.
However, Rest of the World revenues (19.6% of total revenues) declined 10.4% year over year to $206 million.
Managed services revenues (58% of total revenues) climbed 4.7% year over year to $610.5 million.
Amdocs Limited Price, Consensus and EPS Surprise
Amdocs Limited price-consensus-eps-surprise-chart | Amdocs Limited Quote
The company ended the quarter with a 12-month backlog of $3.62 billion, up 3.7% year over year.
Meanwhile, research & development expenses as percentage of revenues increased 40 basis points (bps) on a year-over-year basis to 7.1%.
However, selling, general & administrative expenses as percentage of revenues decreased 220 bps year over year to 9.7%.
Operating margin contracted 10 bps year over year to 17.2%.
Balance Sheet and Cash Flow
Amdocs had cash and cash equivalents of $983.9 million as of Sep 30, 2020, up from $1.19 billion on Jun 30, 2020.
Cash flow from operating activities was $204.7 million, up from $186.7 million recorded in the previous quarter and $213.6 million in the year-ago quarter.
Free cash flow was $145.1 million compared with the previous quarter’s $145.4 million and $179.3 million reported in the year-ago quarter.
During fiscal fourth quarter, the company repurchased shares worth $91 million. Amdocs’ board of directors approved the payment of a quarterly dividend of $0.3275 per share. The dividends will be paid out on Jan 22, 2021.
Amdocs’ board also approved a 10% increase in quarterly cash dividend payment to 36 cents per share.
Key Developments
Amdocs completed the acquisition of Openet during the reported quarter. The company also won a contract from AT&T (T - Free Report) which selected Openet’s 5G solution to quickly launch and monetize new 5G services on the cloud.
Moreover, it signed a new multi-year strategic agreement with Amazon’s (AMZN - Free Report) cloud arm AWS to bring its cloud-native BSS offerings and wide range of services to jointly address the rapidly growing cloud market.
Moreover, Amdocs announced the divestiture of OpenMarket for approximately $300 million cash with Infobip.
Guidance
For the first quarter of fiscal 2021, revenues are expected between $1.055 billion and $1.095 billion.
Non-GAAP earnings are projected to be $1.09-$1.15 per share.
Amdocs expects fiscal 2021 revenues to grow between 4% and 8% year over year. At cc, revenues are expected to grow in the 3.5-7.5% range. Openet is expected to contribute 1.5% growth, while favorable forex is likely to add 0.5%.
Adjusted earnings are estimated to grow between 5% and 9%.
The company expects free cash flow to be roughly $470 million.
Zacks Rank & A Key Pick
Amdocs currently carries a Zacks Rank #3 (Hold).
NVIDIA (NVDA - Free Report) is a better-ranked stock in the broader computer & technology sector carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVIDIA is set to report quarterly results on Nov 18.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>