Amdocs to Announce Q1 Earnings with Mixed Analyst Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy DOX?
Source: seekingalpha
Amdocs Ltd (DOX) has seen its stock price decline by 4.47%, hitting a 20-day low amid broader market weakness, with the Nasdaq-100 down 1.61% and the S&P 500 down 0.89%.
The company is set to announce its Q1 2023 earnings on February 3rd, with consensus EPS expectations at $1.76, reflecting a 6.0% year-over-year growth. However, analysts have made three downward adjustments to EPS estimates in the last three months, indicating a cautious outlook despite the anticipated revenue growth of 3.6% year-over-year to $1.15 billion.
This upcoming earnings report will be crucial for Amdocs as it navigates competitive market pressures, and the mixed analyst revisions suggest that investors should prepare for potential volatility in response to the results.
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Analyst Views on DOX
Wall Street analysts forecast DOX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOX is 99.00 USD with a low forecast of 87.00 USD and a high forecast of 111.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 71.130
Low
87.00
Averages
99.00
High
111.00
Current: 71.130
Low
87.00
Averages
99.00
High
111.00
About DOX
Amdocs Limited is a provider of software and services to communications and media companies in both developed countries and emerging markets. The Company's offerings are based on a product and service mix, using technologies and methodologies, such as the cloud and cloud native, microservices, development and operations (DevOps), low-code/no-code, edge computing, open source, bimodal operations, Site Reliability Engineering (SRE) and increasing amounts of automation through standard information technology (IT) tools, open Application programming interface (APIs) and artificial intelligence (AI), generative artificial intelligence (GenAI), and machine learning (ML). Its comprehensive line of services is designed to address every stage of a service provider's lifecycle and includes consulting, delivery, quality engineering (testing), systems integration, operations, network services, experience-driven services, data, cloud, and content services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Amdocs Q1 Earnings Exceed Expectations
- Earnings Beat: Amdocs reported a Q1 non-GAAP EPS of $1.81, beating expectations by $0.05, with revenue of $1.16 billion reflecting a 4.5% year-over-year increase, surpassing estimates by $10 million, indicating strong market performance.
- Positive Outlook: The company expects fiscal 2026 revenue growth between 1.5% and 5.5%, reiterating a constant currency growth outlook of 1.0% to 5.0%, showcasing confidence in future market demand.
- Q2 Guidance: Amdocs anticipates Q2 fiscal 2026 revenue between $1.15 billion and $1.19 billion, with non-GAAP EPS guidance of $1.73 to $1.79, reflecting ongoing confidence in sustained growth.
- Stable Cash Flow: The company reaffirms its fiscal 2026 free cash flow guidance of $710 million to $730 million, demonstrating robust management of capital expenditures and operational cash flow, which further enhances investor confidence.
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Amdocs CEO Shuky Sheffer Retires, Shimie Hortig Takes Over
- Leadership Transition: Amdocs CEO Shuky Sheffer has announced his retirement, with Shimie Hortig, currently Group President of the Americas Business Group, set to take over, which is expected to drive further advancements in cloud and AI sectors.
- Strategic Transformation Achievements: Under Sheffer's leadership, Amdocs successfully transformed into a cloud-native and AI-driven powerhouse, achieving $4.53 billion in revenue for fiscal 2025, demonstrating the company's strong competitiveness in digital transformation.
- New CEO Objectives: Hortig stated he will focus on deepening customer relationships and driving digital and GenAI transformations, aiming to position Amdocs as the most valuable partner in the industry for sustainable growth and shareholder value enhancement.
- Industry Influence: With over 20 years of experience in technology and telecommunications, Hortig's leadership is expected to further solidify Amdocs' position in the global communications and media market, particularly in the rapidly evolving AI sector.
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Amdocs Set to Announce Q1 Earnings Expectations
- Earnings Announcement Date: Amdocs (DOX) is set to release its Q1 2023 earnings on February 3rd after market close, with consensus EPS expectations at $1.76, reflecting a 6.0% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $1.15 billion, representing a 3.6% year-over-year increase, which suggests Amdocs is maintaining a solid growth trajectory despite competitive market pressures.
- Historical Performance Review: Over the past two years, Amdocs has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating reliability in financial performance and fostering market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw no upward revisions but three downward adjustments, while revenue estimates experienced two upward and one downward revision, reflecting analysts' cautious outlook on the company's future performance.
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Amdocs Q1 Earnings Exceed Expectations
- Earnings Beat: Amdocs reported a Q1 non-GAAP EPS of $1.81, beating expectations by $0.05, with revenue of $1.16 billion reflecting a 4.5% year-over-year increase, surpassing estimates by $10 million, indicating strong market performance.
- Positive Outlook: The company expects fiscal 2026 revenue growth between 1.5% and 5.5%, reiterating a constant currency growth outlook of 1.0% to 5.0%, showcasing confidence in future market demand.
- Q2 Guidance: Amdocs anticipates Q2 fiscal 2026 revenue between $1.15 billion and $1.19 billion, with non-GAAP EPS guidance of $1.73 to $1.79, reflecting ongoing confidence in sustained growth.
- Stable Cash Flow: The company reaffirms its fiscal 2026 free cash flow guidance of $710 million to $730 million, demonstrating robust management of capital expenditures and operational cash flow, which further enhances investor confidence.
See More
Amdocs CEO Shuky Sheffer Retires, Shimie Hortig Takes Over
- Leadership Transition: Amdocs CEO Shuky Sheffer has announced his retirement, with Shimie Hortig, currently Group President of the Americas Business Group, set to take over, which is expected to drive further advancements in cloud and AI sectors.
- Strategic Transformation Achievements: Under Sheffer's leadership, Amdocs successfully transformed into a cloud-native and AI-driven powerhouse, achieving $4.53 billion in revenue for fiscal 2025, demonstrating the company's strong competitiveness in digital transformation.
- New CEO Objectives: Hortig stated he will focus on deepening customer relationships and driving digital and GenAI transformations, aiming to position Amdocs as the most valuable partner in the industry for sustainable growth and shareholder value enhancement.
- Industry Influence: With over 20 years of experience in technology and telecommunications, Hortig's leadership is expected to further solidify Amdocs' position in the global communications and media market, particularly in the rapidly evolving AI sector.
See More
Amdocs Set to Announce Q1 Earnings Expectations
- Earnings Announcement Date: Amdocs (DOX) is set to release its Q1 2023 earnings on February 3rd after market close, with consensus EPS expectations at $1.76, reflecting a 6.0% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $1.15 billion, representing a 3.6% year-over-year increase, which suggests Amdocs is maintaining a solid growth trajectory despite competitive market pressures.
- Historical Performance Review: Over the past two years, Amdocs has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating reliability in financial performance and fostering market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw no upward revisions but three downward adjustments, while revenue estimates experienced two upward and one downward revision, reflecting analysts' cautious outlook on the company's future performance.
See More
European Market Resilience: Línea Directa Trading 32.2% Below Fair Value
- Market Recovery Signals: The STOXX Europe 600 Index rose by 0.77%, indicating positive economic data and earnings reports, while Germany's economy emerged from a two-year recession with modest growth, suggesting a revival in market activity.
- Línea Directa Valuation Analysis: Línea Directa Aseguradora is currently trading at €1.15, which is 32.2% below its estimated fair value of €1.69; despite a revenue growth rate of 6.4% annually, its net income increased to €59.67 million for the first nine months of 2025, indicating improved profitability.
- Cogelec Potential Opportunity: Cogelec SA is priced at €29.2, below its estimated fair value of €40.36, reflecting a 27.7% discount; although profit margins have declined to 6.5%, earnings are expected to grow at 35.7% annually, significantly outpacing the French market's growth rate of 11.9%, showcasing strong growth potential.
- LINK Mobility Optimistic Outlook: LINK Mobility Group Holding is trading at NOK 33.9, significantly below its fair value estimate of NOK 66.27, suggesting a 48.8% discount; despite a decline in profit margins from 2.5% to 1.5%, earnings are forecasted to grow over 71% annually, indicating substantial profit growth potential.
See More
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- Market Opportunities: Amid economic recovery, investors are increasingly focused on undervalued stocks, particularly those with strong fundamentals that may offer growth potential.
- Ion Beam Applications Overview: The company has a market cap of €438.41 million, with a current price of €14.98, significantly below its fair value of €28.64, indicating a 47.7% discount, despite revenue growth forecasts lagging behind the Belgian market.
- Earnings Growth Expectations: Ion Beam Applications anticipates annual earnings growth of 29.8%, surpassing market averages, and recent contracts with institutions like MD Anderson Cancer Center highlight robust demand for its advanced treatment systems.
- Munters Group Financial Status: With a market cap of SEK 30.69 billion and a current price of SEK 168.1, slightly below the fair value of SEK 188.68, the company faces challenges from high debt and volatile share prices, yet is expected to achieve a 37% annual profit growth.
See More
European Stock Market Gains; Sonova and Others Identified as Undervalued
- Market Recovery: Major stock indexes like Germany's DAX and France's CAC 40 have shown notable gains amid optimism about the economic outlook and favorable interest rates, indicating increased investor confidence and paving the way for future investment opportunities.
- Undervalued Stocks Screening: Companies such as Sonova Holding, STMicroelectronics, and Laboratorios Farmaceuticos Rovi are identified as undervalued based on cash flow assessments, with Sonova trading at CHF 212.6, significantly below its fair value of CHF 424.54, suggesting a potential upside of 49.9%.
- Growth Potential: Despite a decline in Laboratorios Farmaceuticos Rovi's sales to €525.06 million, its projected annual growth rate of 19.2% significantly outpaces the Spanish market average of 6.8%, highlighting its attractiveness as an investment opportunity.
- Strategic Collaborations: STMicroelectronics' partnerships with SpaceX and a €500 million financing agreement with the European Investment Bank, despite a drop in profit margins to 4.6%, indicate a strengthening strategic position in the European market.
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