Amdocs Limited (NASDAQ: DOX) stock rose over 4% on 13th May, 2021 (As of 11:22:31 UTC-4 · USD; Source: Google finance) after the company posted better than expected topline estimates for the second quarter of FY 21. In North America the company has delivered the best ever quarter on a pro forma basis, as a healthy level of customer activity continued throughout the region. As North America emerges from the pandemic, 5G network and fastest secure broadband connectivity has become recognized as a backbone of society. Service provider are investing heavily in fiber and 5G deployment, as witnessed in the many billions of dollar they allocated in the recent C-Band spectrum auctions. Further, at Verizon, the company is implementing Amdocs CatalogONE, the cloud native platform designed to rapidly create and launch new 5G services offering, and the company is now progressing an additional program in the network domain, which labeled as Amdocs NEO, the cloud native next generation OSS 5G platform, for services and network automation. Around cable and media, the company has just completed successful subscriber migration for Altice USA, falling into a position of Service Electric Cable TV last year, and the company plans to continue to implement the BSS and OSS platform for Comcast business.
From an operational perspective, the company can leverage the scale and flexibility of the global delivery model and the extended capabilities in other parts of the world, such as the U.S. and U.K., where the state of the pandemic has much improved and the core development and delivery centers in Israel, where activities are pretty much back to the offices.
DOX in the second quarter of FY 21 has reported the adjusted earnings per share of $1.13, which is in line with the analysts’ estimates for the adjusted earnings per share of $1.13, according to Analysts polled by Capital IQ. The company had reported the adjusted revenue growth of 5.7 percent to $1.05 billion in the second quarter of FY 21, beating the analysts’ estimates for revenue of $1.04 billion.
For fiscal Q3, the company forecasts non-GAAP EPS to be in the range of $1.14 to $1.20 on revenue expected to be in the range of $1.04 billion to $1.08 billion. The Street view is for non-GAAP EPS of $1.08 on revenue of $1.05 billion.
For fiscal 2021, the company anticipates non-GAAP diluted earnings per share growth to be of roughly 6% to 9% year over year, versus the 4% to 8% prior range, and revenue growth is expected to be in the range of 1%-4% on a reported basis, compared with a decline 0.3% to 3.7% growth previously projected.