Upcoming AWS Coverage on CA Technologies Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 26, 2017 / Active Wall St. announces its post-earnings coverage on Amdocs Ltd (NASDAQ: DOX). The Company announced its second quarter fiscal 2017 financial results on May 09, 2017. The provider of computer systems integration exceeded top- and bottom-line expectations. The company also raised its outlook. Register with us now for your free membership at:

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One of Amdocs' competitors within the Business Software & Services space, CA Technologies (NASDAQ: CA), reported on May 11, 2017, its financial results for Q4 FY17 and full FY17, which ended March 31, 2017. AWS will be initiating a research report on CA, Inc. in the coming days.

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

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Earnings Reviewed

Amdocs' revenue for the second fiscal quarter ended March 31, 2017, was $966.01 million, up 4.3% compared to Q2 FY17 revenue of $925.94 million. The Company's revenue for the reported quarter includes a positive impact from foreign currency movements of approximately $3 million relative to the previous quarter. Amdocs' revenue was at the midpoint of the Company's guidance, excluding foreign currency movements and ahead of analysts' consensus for revenue of $960.7 million.

For Q2 FY17, Amdocs reported GAAP operating income of $134 million, while GAAP operating margin was 13.8% for the reported quarter. The Company's non-GAAP operating income totaled $166 million, while non-GAAP operating margin was 17.2%

Amdocs' GAAP net income for Q2 FY17 was $112.6 million, or $0.76 per diluted share, compared to GAAP net income of $107.7 million, or $0.71 per diluted share, in Q2 FY16. The Company's net income on a non-GAAP basis was $139.2 million, or $0.94 per diluted share, for the reported quarter, compared to non-GAAP net income of $140.2 million, or $0.92 per diluted share, in the prior year's same quarter. Amdocs' earnings numbers exceeded Wall Street's estimates of $0.93 per share.

Cash Matters

On May 09, 2017, Amdocs' Board approved the Company's next quarterly cash dividend payment of $0.22 per share and set June 30, 2017, as the record date for determining the shareholders entitled to receive the dividend, which will be payable on July 14, 2017. The Company repurchased $80 million of ordinary shares during Q2 FY17, under its current authorization of $750 million. Amdocs' have $437 million remaining under authorization as of March 31, 2017.

Amdocs' free cash flow was $81 million in Q2 FY17, comprising of cash flow from operations of approximately $107 million, less $26 million in net capital expenditures and other, and included an annual cash bonus payment for the prior fiscal year. The Company's Days Sales Outstanding (DSO) of 80 days decreased by 2 days on a q-o-q basis. Total unbilled receivables increased by $3 million compared to Q1 2017.

Amdocs' total deferred revenue, both short- and long-term, decreased by $13 million sequentially in the reported quarter. The Company's cash balance at the end of Q2 FY17 was approximately $1.1 billion, though net of short-term debt, it was $0.9 billion.

Twelve-month Backlog

Amdocs' 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 $3.21 billion at the end of Q2 FY17, up $30 million from the end of the prior quarter.

Outlook

For Q3 FY17, Amdocs is forecasting revenue of approximately $945 million-$985 million, including an immaterial sequential impact from foreign currency fluctuations compared to Q2 FY17. The Company is projecting diluted GAAP EPS of approximately $0.69-$0.77, and diluted non-GAAP EPS of approximately $0.93-$0.99, excluding amortization of purchased intangible assets and other acquisition-related costs and approximately $0.06-$0.07 per share of equity-based compensation expense, net of related tax effects

For full year FY17, Amdocs' expects revenue growth of 3.5%-5.5% y-o-y on a constant currency basis compared with previous guidance of 2.5%-6.5%. The Company is projecting GAAP diluted earnings per share growth of about 5.0% to 11.0% y-o-y and non-GAAP diluted earnings per share growth of approximately 4.5-8.5% on a y-o-y basis.

Stock Performance

At the close of trading session on Thursday, May 25, 2017, Amdocs' share price finished the trading session at $64.24, slightly up 0.53%. A total volume of 674.02 thousand shares exchanged hands, which was higher than the 3 months average volume of 619.94 thousand shares. The stock has surged 7.62% and 12.43% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have rallied 10.28%. The stock is trading at a PE ratio of 23.39 and has a dividend yield of 1.37%.

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SOURCE: Active Wall Street