Telecom software provider Amdocs (NASDAQ: DOX) will be announcing earnings results this Wednesday after market hours. Here’s what you need to know.
Amdocs beat analysts’ revenue expectations last quarter, reporting revenues of $1.17 billion, up 3.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates and revenue guidance for next quarter meeting analysts’ expectations.
Is Amdocs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Amdocs’s revenue to grow 2.7% year on year, a reversal from the 8.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Amdocs has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Amdocs’s peers in the it services & other tech segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 581%, beating analysts’ expectations by 148%, and Everforth reported a revenue decline of 1.3%, topping estimates by 1.6%. Applied Digital’s stock price was unchanged after the resultswhile Everforth was up 17.8%.
Read our full analysis of Applied Digital’s results here and Everforth’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 5.3% on average over the last month. Amdocs is up 8.1% during the same time and is heading into earnings with an average analyst price target of $81.21 (compared to the current share price of $55.43).
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