Stock Alert:Amdocs Trading Up On Improved Earnings
Shares of Amdocs Limited (DOX) are climbing more than 5% Wednesday morning after reporting better-than-expected fourth quarter results.
The company’s net income for the fourth quarter was $134.5 million, or $1.01 per share, compared to $122.0 million, or $0.90 per share, in the prior fiscal year’s fourth quarter.
Adjusted EPS of $1.23 per share beat the average estimate of analysts polled by Thomson Reuters at $1.18.
Revenue for the quarter $1.053 billion compared with $1.03 billion in the same quarter a year ago.
For the first-quarter, the company expects revenue to be in the range of of approximately $1.055 billion -$1.095 billion and adjusted EPS in the range of $1.09-$1.15. The consensus estimate for revenue is at $1.06 billion and for EPS is at $1.14.
For the full-year, the company expects revenue growth to be in the range of 4.0%-8.0%. The consensus estimate was for 2.80% growth.
“The impact of the acquisition of Openet on Amdocs’ non-GAAP diluted earnings per share is expected to be neutral in fiscal year 2021, and accretive thereafter,” the company said.
Also, the Board approved the company’s next quarterly cash dividend payment of $0.3275 per share to be paid to shareholders of record December 31, 2020 payable on January 22, 2021. The Board also approved a 10% increase in the company’s quarterly cash dividend payment to $0.36 per share, which is anticipated to be first paid in April 2021.
Amdocs provides software and services to the communications, cable and satellite, entertainment, media industry, and other service providers.
Dox is currently trading at $64.23 and has been trading in the range of $44.05- $77.29 in the past 52 weeks.
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