Israeli telecom billing and IT business systems provider Amdocs Ltd. (NYSE: DOX) has raised its guidance after reporting strong financial results for the second fiscal quarter of 2019, in which it beat the analysts' estimates. Following publication of its results Amdocs share price rose 0.26% to $53.49, giving a market cap of $7.432 billion.
Revenue in the second fiscal quarter of 2019 was $1.020 billion, above the midpoint of the $995 million to $1.035 billion guidance range, and up 2.8% from $992 million in the corresponding quarter of 2018.
Amdoc's GAAP net profit for the second quarter of fiscal 2019 was $124.3 million ($0.90 per share) up from of $101.7 million ($0.70 per share) in the corresponding quarter of 2018. Non-GAAP net profit was $147.0 million ($1.06 per share) up from $137.4 million ($0.95 per share) in the corresponding quarter of fiscal 2018.
In the third fiscal quarter of 2019, Amdocs expects revenue of $1.005-1.045 billion and non-GAAP earnings per share of $1.08-1.14. Amdocs has also revised its revenue guidance upwards for all of 2019 by 0.5%-4.5%, and now expects revenue of $4.046 - 4.126 billion and pushed up its non-GAAP earnings per share forecast by 3%-7% to $4.21-4.37.
Amdocs president and CEO Shuky Sheffer said, "We are pleased to report a strong performance for our second fiscal quarter, which included record revenue, solid profitability and diluted non-GAAP earnings per share in line with the high-end of our guidance. Additionally, 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. As such, we remain on-track to achieve our normalized free cash flow target of approximately $600 million for the full fiscal year 2019, which equates to a conversion rate of approximately 100% relative to our expected non-GAAP net income."
Sheffer continued, "At the core of Amdocs’ market leadership and future growth is our ability to continuously innovate and bring new offerings to market. Along these lines, we recently launched our Open 5G suite at Mobile World Congress, which offers service providers an end-to-end solution to rapidly deploy, automate and monetize smart and agile 5G networks."
He concluded, "Looking towards 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. Additionally, we see an attractive pipeline of opportunities ahead of us, which further supports our confidence in the near term outlook. With these factors in mind, we now expect to deliver diluted non-GAAP earnings per share growth in the range of 4.5% to 8.5% for the full fiscal year 2019, which represents an increase of approximately 150 basis points over our previous guidance."
Published by Globes, Israel business news - en.globes.co.il - on May 15, 2019
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