Telecom software provider Amdocs (NASDAQ: DOX) will be announcing earnings results this Tuesday after the bell. Here’s what investors should know.
Amdocs beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.15 billion, down 9% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ backlog estimates but a significant miss of analysts’ EPS guidance for next quarter estimates.
Is Amdocs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Amdocs’s revenue to grow 3.9% year on year to $1.15 billion, a reversal from the 10.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.76 per share.
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 Street’s revenue estimates three times over the last two years.
Looking at Amdocs’s peers in the it services & other tech segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 98.2%, beating analysts’ expectations by 14.8%, and IBM reported revenues up 12.1%, topping estimates by 2.5%. Applied Digital traded up 8.1% following the results while IBM was also up 5.1%.
Read our full analysis of Applied Digital’s results here and IBM’s results here.
Investors in the it services & other tech segment have had steady hands going into earnings, with share prices flat over the last month. Amdocs is up 1.1% during the same time and is heading into earnings with an average analyst price target of $102.50 (compared to the current share price of $81.94).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
