Amdocs Limited (NASDAQ: DOX) stock rose 12.3% on 15th May, 2019 (As of 1:02 pm GMT-4; Source: Google finance) after the company in the second quarter of FY 19 has reported 2.8% rise in the revenue to $1,020 million. Net income on a non-GAAP basis was $147.0 million, compared to non-GAAP net income of $137.4 million, in the second quarter of fiscal 2018.
Moreover, for North America, quarterly trends remain likely to fluctuate for the foreseeable future, but the company is on track to deliver modest revenue growth for the full fiscal year with headwinds at AT&T compensated by the healthy customer activity we are seeing in the broader region. For Europe, the quarterly revenue was in line with the multi-year high of Q4 2018 and include the new project wins the company referenced last quarter with Veon and a Tier 1 service provider in Spain. Further, in France, the company won the first important modernization project for a major operator. The company has extended managed services agreements with several customers, including Vodafone Hungary, and the company has partnered with Capita plc to provide digital business systems to support the roll out of transport for London’s [indiscernible] emissions on regulation and standards. For the Rest of the World, DOX has delivered a record quarter, which include the ramp up of new activities in APAC country, such as the Philippines, Malaysia and Australia as well as Latin America. During the quarter, the company has strengthened the relationship with Telefonica, where the company were selected to support the launch of eSIM equipped smartphone and other devices for Vivo in Brazil.
For the third quarter of FY 19, DOX expects the revenue to be in the range of approximately $1,005-$1,045 million, after assuming approximately $2 million sequential negative impact from foreign currency fluctuations as compared to the second quarter of fiscal 2019. Non-GAAP diluted earnings per share is expected to be in the range of approximately $1.08-$1.14.
For FY 19, DOX expects revenue growth to be in the range of 1.8%-3.8% year-over-year as reported compared with 0.5%-4.5% year-over-year previously. The company expects revenue growth to be in the range of 3.0%-5.0% year-over-year on a constant currency basis, the midpoint of which is unchanged compared with 2.0%-6.0% year-over-year previously. DOX expects non-GAAP diluted earnings per share growth to be in the range of roughly 4.5%-8.5% year-over-year compared with 3.0%-7.0% year-over-year previously. The company has reiterated the free cash flow guidance of approximately $500 million, and normalized free cash flow of approximately $600 million.