Amdocs (DOX) Down 0.3% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Amdocs (DOX). Shares have lost about 0.3% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Amdocs due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Amdocs Beats on Q1 Earnings and Revenue EstimatesAmdocs Limited reported first-quarter fiscal 2025 non-GAAP earnings of $1.66 per share, which came above the midpoint of management’s guidance range of $1.61-$1.67 and increased 6.4% year over year. The figure also exceeded the Zacks Consensus Estimate of $1.64.Amdocs’ first-quarter revenues of $1.11 billion matched the consensus mark. However, compared with the year-ago quarter, revenues were down 10.9% on a reported basis due to the phase-out of certain business activities. Excluding the effect of phase-out business activities, revenues were up 1.7% year-over-year in pro forma constant currency.Amdocs’ Q1 DetailsAmdocs reported a decline in revenues across all regions due to the phase-out of certain business activities. North America reported revenues of $737.4 million (66.4% of total revenues), which plunged 12% year over year.Europe revenues (14% of total revenues) of $155.2 decreased 14.4% year over year. Rest of the World (RoW) revenues (19.6% of total revenues) declined 3.7% year over year to $217.4 million. Our model estimates for North America, Europe and RoW were pinned at $733.2 million, $164 million and $215.8 million, respectively.Managed services revenues rose 0.9% year over year to $729 million. The company ended the first quarter of fiscal 2025 with a 12-month backlog of $4.14 billion, up $80 million sequentially. Our model estimates for managed services revenues and backlog were pegged at $646 million and $3.73 billion, respectively.The non-GAAP operating income increased 4.5% year over year to $235.4 million, while the operating margin expanded 310 basis points (bps) to 21.2%.Balance Sheet and Cash FlowAmdocs had cash and short-term investments of $349 million as of Dec. 31, 2024, compared with $514.3 million as of Sept. 30, 2024. Long-term debt was $646.4 million as of Dec. 31, slightly higher than $646.3 million as of Sept. 30.During the first quarter, it generated an operating cash flow of $105.6 million and a free cash flow of $78 million.Amdocs Guidance UpdateAmdocs initiated guidance for the second quarter and updated the outlook for the full fiscal 2025. For the second quarter, the company expects revenues to be in the band of $1.105-$1.145 billion (mid-point $1.125 billion).Amdocs expects non-GAAP earnings per share to be between $1.67 and $1.73.For fiscal 2025, Amdocs now expects revenues to decline between 8.4% and 11.6% on a year-over-year basis, slightly higher than the previous guidance of a decline of 7.7-10.9%.Non-GAAP operating margin is still anticipated to be in the range of 21.1-21.7% for fiscal 2025. Non-GAAP earnings are still expected to grow in the band of 6.5-10.5%.The company continues to expect free cash flow between $710 million and $730 million.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.VGM ScoresCurrently, Amdocs has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Amdocs has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amdocs Limited (DOX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks