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Amdocs (DOX) Down 0.7% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Amdocs (DOX). Shares have lost about 0.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Amdocs due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Amdocs Q4 Earnings Match Estimates, Revenues Miss

Amdocs reported fourth-quarter fiscal 2024 results, wherein earnings matched the Zacks Consensus Estimate but revenues missed the same. However, both top and bottom lines marked a year-over-year improvement.

The company reported fourth-quarter non-GAAP earnings of $1.70 per share, matching the consensus mark. The non-GAAP earnings came at the mid-point of management’s guidance of $1.67-$1.73. Quarterly earnings increased 4.9% from the year-ago quarter’s $1.62 per share.

Amdocs reported revenues of $1.264 billion, which missed the Zacks Consensus Estimate by 0.71% came within management’s guidance of $1.240-$1.280 billion. Compared with the year-ago quarter, revenues were up 1.7% on a reported basis and 2.1% on a constant-currency basis.

Amdocs’ Q4 Details

Amdocs’ top-line performance was contributed well by year-over-year growth in North America and Europe and the Rest of World (RoW).

North America reported revenues of $835.8 million (66.1% of total revenues), which rose 0.2% year over year. Europe revenues (14.6% of total revenues) of $184.1 increased 4.9% year over year.

RoW revenues (19.3% of total revenues) grew 4.9% year over year to $244 million. Our model estimates for North America, Europe and RoW were pinned at $834.4 million, $184.1 million and $246.3 million, respectively.

Managed services revenues rose 0.5% year over year to $721.4 million. The company ended the fourth quarter of fiscal 2024 with a 12-month backlog of $4.06 billion, up $30 million sequentially and 2.5% year over year. Our model estimates for managed services revenues and backlog were pegged at $736.4 million and $4.27 billion, respectively.

The non-GAAP operating income increased 6.8% year over year to $236.2 million, while the operating margin expanded 90 basis points (bps) to 18.7%. Non-GAAP operating margin for fiscal 2024 improved 60 bps to 18.4%.

Amdocs’ FY24 Performance in Brief

Amdocs reported fiscal 2024 revenues of $5.005 billion, lagging the consensus mark by 0.1%. The top line improved 2.4% year over year on a reported basis and 2.7% in constant currency.


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