Amdocs Ltd. (NYSE:DOX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Amdocs Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 8.96% to $0.73 in the quarter versus EPS of $0.67 in the year-earlier quarter.
Revenue: Rose 2.97% to $832.93 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Amdocs Ltd. reported adjusted EPS income of $0.73 per share. By that measure, the company beat the mean analyst estimate of $0.72. It missed the average revenue estimate of $834.94 million.
Quoting Management: “We followed-up our strong start to fiscal 2013 by delivering record revenues in the second fiscal quarter. We achieved year-on-year improvement in North America for the second consecutive quarter, driven by AT&T and other key customers. This compensated for currency headwinds, the effects of macroeconomic uncertainty, and longer decision making cycles in Europe. Operating margin remained comfortably within our targeted range, and, with the contribution from our continued share repurchase activity, we delivered non-GAAP earnings per share growth of 9% year-on-year in the second fiscal quarter,” said Eli Gelman, chief executive officer of Amdocs Management Limited.
Key Stats (on next page)…
Revenue increased 0.8% from $826.36 million in the previous quarter. EPS decreased 0% from $0.73 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.74 to a profit $0.73. For the current year, the average estimate is a profit of $2.92, which is the same with that ninety days ago.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)