Amdocs (DOX) Tops Q2 EPS by 2c, Offers Guidance

Amdocs (NASDAQ: DOX) reported Q2 EPS of $1.08, $0.02 better than the analyst estimate of $1.06. Revenue for the quarter came in at $1.05 billion versus the consensus estimate of $1.04 billion.

GUIDANCE:

Amdocs sees Q3 2020 EPS of $1.00-$1.08, versus the consensus of $1.16. Amdocs sees Q3 2020 revenue of $999-1040 million, versus the consensus of $1050 million.

• Revenue of approximately $990-$1,040 million, assuming approximately $8 million sequential negative impact from foreign currency fluctuations as compared to the second quarter of fiscal 2020
• GAAP diluted EPS of approximately $0.81-$0.91
• Non-GAAP diluted EPS of approximately $1.00-$1.08, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.06-$0.08 per share of equity-based compensation expense, net of related tax effects

Full Year Fiscal 2020 Outlook

• Revenue growth of (0.5%) -2.5% year-over-year on a reported basis as compared with 2.5%-5.5% year-over-year previously
• Revenue growth of 0.5%-3.5% year-over-year on a constant currency basis as compared with 2.5%-5.5% year-over-year previously
• Full year fiscal 2020 revenue guidance incorporates just over 1% of growth from the acquisition of TTS Wireless, and a negative impact from foreign currency fluctuations of approximately 1% as compared with an immaterial impact year-over-year previously
• GAAP diluted earnings per share growth of roughly 4.0%-10.0% year-over-year as compared with 5.0%-12.0% year-over-year previously
• Non-GAAP diluted earnings per share growth of roughly 0.0%-4.0% year-over-year as compared with 3.0%- 7.0% year-over-year previously, excluding amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.24-$0.28 per share of equity-based compensation expense, net of related tax effects
• Reiterates free cash flow of approximately $400 million, comprised of cash flow from operations, less net capital expenditures and other
• Reiterates normalized free cash flow of approximately $500 million; normalized free cash flow excludes capital expenditure of up to $90 million related to the new campus development in Israel, and other items

For earnings history and earnings-related data on Amdocs (DOX) click here.

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