Shares of Amdocs (NASDAQ: DOX) jumped on Wednesday following a fiscal second-quarter report that beat expectations. Revenue was in line with analyst estimates, but earnings came in ahead of expectations. The stock was up about 12.8% at 12:40 p.m. EDT.
Amdocs reported second-quarter revenue of $1.02 billion, up 2.8% year over year. This was above the midpoint of the company’s guidance range of $995 million to $1.035 billion.
Non-GAAP earnings per share came in at $1.06, up from $0.95 in the prior-year period and $0.03 higher than analysts were expecting. Operating cash flow was $168.6 million during the quarter, up from $113.7 million in the prior-year period. “Our quarterly cash collection was healthy as we continued to meet key delivery milestones related to the many transformation projects we are progressing for our customers,” said Amdocs CEO Shuky Sheffer.
Amdocs expects third-quarter revenue between $1.005 billion and $1.045 billion, along with non-GAAP EPS between $1.08 and $1.14. For the full year, the company sees revenue growth between 1.8% and 3.8%, along with non-GAAP EPS growth of 4.5% to 8.5%. Full-year free cash flow is expected to be roughly $500 million.
“Looking toward our fiscal second half, we are encouraged by our record 12-month backlog which reflects the high win rate we are seeing across business lines such as Pay TV, media and managed services,” Sheffer added.
10 stocks we like better than Amdocs
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Amdocs wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 1, 2019