Oppenheimer Remains Bullish on Amdocs (DOX) as North America Lagged in 1Q
Oppenheimer reiterated an Outperform rating and $65.00 price target on Amdocs Ltd. (NASDAQ: DOX) following the company's 1Q earnings. DOX posted revenue of $922M. Adjusting for an FX headwind of ~$5M, revenue would have been ~ $927M. EPS of $0.86 beat the consensus $0.85. Performance from North America lagged, but Europe and Rest of World picked up the slack.
Analyst Shaul Eyal commented, "For F1Q16 (Dec 15), DOX posted $0.86/$922M. Ex. a $5M FX headwind, revenue would have been $5M higher so that DOX would have delivered revenue and EPS ahead of the consensus $0.85/$925M. Performance from North America lagged, but Europe and Rest of World picked up the slack. In North America AT&T business has slowed, but DOX noted that this slowdown reflects the typical ebbs and flows of business as AT&T pursues its strategic objectives. Management also noted that DOX is working closely with AT&T on multiple projects. Management also commented that it has seen a quickening of interest in the Pay TV space (no deals yet, we believe). DOX continues to deliver steady performance, and we reiterate our Outperform rating and $65 target."
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Shares of Amdocs Ltd. closed at $55.03 yesterday.