During the third quarter of its fiscal year (the three months ending on June 30), the net profit of Amdocs Ltd. (Nasdaq: DOX) outstripped the analysts' forecasts. The company's forecast for the next quarter, however, was below the market's predictions.
Amdocs, which provides IT solutions and systems for communications companies, published its financial statements after the conclusion of trading yesterday, reporting 3.9% growth in revenue to $967 million, in line with the analysts' forecasts. Non-GAAP net profit in the quarter grew 11% to $150 million, $1.02 per share, over $0.06 higher than the market's forecasts.
In the first three quarters of its 2017 fiscal year, which started in October 2016, Amdocs's revenue totaled $2.9 billion, 4% more than in the corresponding period in the preceding year, and its non-GAAP net profit rose by the same rate to $423 million. The company's net accounting profit, before deducting various items, was $119 million in the third quarter and $330 million since the beginning of the fiscal year. Amdocs's orders backlog for the coming year is $3.2 billion. Amdocs expects $955-995 million in revenue in the fourth fiscal quarter, 1.5-5.7% more than in the corresponding quarter in the preceding year.
According to Amdocs's forecast, it will finish the 2017 fiscal year with $3.8-3.9 billion in revenue, compared with $3.7 billion in the 2016 fiscal year (a 3.5-4.5% increase, excluding the effects of exchange rates). The company predicts a net profit of $0.91-0.97 per share in the coming quarter, amounting to $134-143 million, and $3.77-3.83 per share for the 2017 fiscal year as a whole. The analysts' revenue forecast is within the range provided by Amdocs, but the analysts' profit forecast is higher - $0.99 per share in the fourth quarter.
Amdocs has generated $437 million from activity since the beginning of the year, and had $963 million in cash as of the end of the third fiscal quarter.
"Our third quarter performance was steady, including another peak revenue quarter and the highest profit margin in recent years," Amdocs CEO Eli Gelman said, adding that the company's business in North America was strong. "We are encouraged by the strong sales momentum in recent quarters, indicating our ability to anticipate and invest in the future needs of communications companies, sometimes many quarters in advance."
Published by Globes [online], Israel Business News - www.globes-online.com - on August 3, 2017
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