What To Expect From Amdocs’s (DOX) Q3 Earnings

DOX Cover Image

Telecom software provider Amdocs (NASDAQ: DOX) will be announcing earnings results this Tuesday after market close. Hereโ€™s what to look for.

Amdocs beat analystsโ€™ revenue expectations by 0.8% last quarter, reporting revenues of $1.14 billion, down 8.4% year on year. It was a strong quarter for the company, with an impressive beat of analystsโ€™ full-year EPS guidance estimates and a narrow beat of analystsโ€™ revenue estimates.

Is Amdocs a buy or sell going into earnings? Read our full analysis here, itโ€™s free for active Edge members.

This quarter, analysts are expecting Amdocsโ€™s revenue to decline 9.5% year on year to $1.14 billion, a reversal from the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.82 per share.

Amdocs Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Amdocs has missed Wall Streetโ€™s revenue estimates three times over the last two years.

Looking at Amdocsโ€™s peers in the it services & other tech segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 84.3%, beating analystsโ€™ expectations by 17.6%, and IonQ reported revenues up 222%, topping estimates by 47.8%. Applied Digital traded up 16.1% following the results while IonQ was also up 3.7%.

Read our full analysis of Applied Digitalโ€™s results here and IonQโ€™s results here.

Investors in the it services & other tech segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Amdocs is up 3.8% during the same time and is heading into earnings with an average analyst price target of $104.00 (compared to the current share price of $84.55).

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