The 10-second takeaway
For the quarter ended June 30 (Q3), Amdocs met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins expanded, net margins grew.
Amdocs logged revenue of $841.3 million. The 12 analysts polled by S&P Capital IQ predicted a top line of $841.8 million on the same basis. GAAP reported sales were 4.0% higher than the prior-year quarter's $808.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.83. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.72 per share. Non-GAAP EPS of $0.83 for Q3 were 19% higher than the prior-year quarter's $0.70 per share. GAAP EPS of $0.73 for Q3 were 24% higher than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 35.0%, 70 basis points worse than the prior-year quarter. Operating margin was 14.6%, 100 basis points better than the prior-year quarter. Net margin was 14.2%, 200 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $852.4 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $3.35 billion. The average EPS estimate is $2.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 198 members out of 207 rating the stock outperform, and nine members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Amdocs a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Amdocs is outperform, with an average price target of $38.45.
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