Post Earnings Coverage as Amdocs Topline and Bottomline Numbers Improve on a YoY Basis

Upcoming AWS Coverage on Cognizant Technology Solutions Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 16, 2016 / Active Wall St. announces its post-earnings coverage on Amdocs Ltd. (NASDAQ: DOX). The company released its financial results for the fourth quarter fiscal 2016 on November 08, 2016. The provider of computer systems integration’s earnings results outperformed market expectations. The company also provided its Fiscal 2017 first quarter outlook. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Amdocs’ competitors within the Business Software & Services space, Cognizant Technology Solutions Corp. (NASDAQ: CTSH), announced ON November 07, 2016, its third quarter 2016 financial results. AWS will be initiating a research report on Cognizant Technology Solutions in the coming days.

Today, AWS is promoting its earnings coverage on DOX; touching on CTSH. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=DOX

http://www.activewallst.com/registration-3/?symbol=CTSH

Earnings Reviewed

For its fourth quarter ended September 30, 2016, Amdocs reported revenue of $940.7 million, up 1.5% compared to Q4 FY15. Revenue for the reported quarter includes a negative impact from foreign currency movements of approximately $2 million relative to Q3 FY16. The revenue numbers topped analysts’ forecasts of revenue of $939.1 million and midpoint of the company’s guidance range of $920 million to $960 million. The Chesterfield, Missouri-based company’s GAAP net income for Q4 FY16 totaled $95.7 million, or $0.64 per diluted share, compared to GAAP net income of $91.1 million, or $0.59 per diluted share, in the prior fiscal year’s comparable quarter. Net income on a non-GAAP basis was $132.4 million, or $0.89 per diluted share, compared to non-GAAP net income of $130.4 million, or $0.84 per diluted share. The results met Wall Street’s expectations for earnings of $0.89 per share. Amdocs reported Q4 FY16 GAAP operating income of $118 million; non-GAAP operating income of $161 million; and non-GAAP operating margin of 17.1%.

For the fiscal year ended September 30, 2016, Amdocs’ revenue increased by 2.0% to $3.7 billion. The Company’s GAAP net income in FY16 was $409.3 million, or $2.71 per diluted share, compared to GAAP net income of $446.2 million, or $2.85 per diluted share, in FY15. FY16 net income on a non-GAAP basis was $540.1 million, or $3.57 per diluted share, compared to non-GAAP net income of $529.7 million, or $3.38 per diluted share, in FY15.

Financial Results

For Q4 FY16, Amdocs’ free cash flow was $125 million which comprised of cash flow from operations of $153 million less $28 million in net capital expenditures and other. The company’s twelve-month backlog, which includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities, was $3.17 billion at the end of Q4 FY16; up $60 million sequentially from the end of the prior quarter, with approximately half of the increase due to acquisitions. The company repurchased $90 million of ordinary shares during Q4 FY16 under its current authorization of $750 million. Amdocs has $597 million remaining of the authorization as of September 30, 2016.
During Q4 FY16, Amdocs’ total unbilled receivables increased by $23 million compared to Q3 FY16. The company’s total deferred revenue, short-term and long-term, increased by $22 million sequentially in Q4 FY16.

Amdocs’ cash balance at the end of Q4 FY16 was approximately $1.1 billion, though net of short-term debt it was $0.9 billion. The company also drew down $200 million on its credit facility in Q4 FY16 for short-term funding purposes.

Quarterly Cash Dividend Program

On November 8th, 2016, Amdocs’ Board approved the Company’s next quarterly cash dividend payment of $0.195 per share and set December 30, 2016, as the record date for determining the shareholders entitled to receive the dividend, which will be payable on January 13, 2017. The Board also approved an increase in the Company’s quarterly cash dividend payment to $0.22 per share, which is anticipated to be paid in April 2017, provided that the increase is approved by shareholders at the January 2017 annual general meeting of shareholders.

Outlook

For Q1 FY17, Amdocs expects revenue to be approximately $935 million – $975 million. Amdocs estimates GAAP diluted earnings per share for Q1 FY17 will be in the range of $0.59-$0.67. Diluted earnings per share on a non-GAAP basis for Q1 FY17 is expected to be $0.87-$0.93, excluding amortization of purchased intangible assets and other acquisition-related costs and approximately $0.09-$0.10 per share of equity-based compensation expense, net of related tax effects.

Stock Performance

Amdocs’ share price finished yesterday’s trading session at $57.65, slipping 1.08%. A total volume of 756.30 thousand shares exchanged hands, which was higher than the 3 months average volume of 709.55 thousand shares. The stock has advanced 2.60% in the last six months. Furthermore, since the start of the year, shares of the company have gained 6.73%. The stock is trading at a PE ratio of 21.38 and has a dividend yield of 1.35%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com
Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 449115