Amdocs (DOX, Financial) has reached a major achievement in its ongoing cloud modernization efforts with PLDT and its wireless unit, Smart Communications. The company successfully transitioned PLDT's crucial systems and legacy applications to Amazon Web Services (AWS). Building on this accomplishment, Amdocs has expanded its collaboration with PLDT and Smart, by signing a new agreement to initiate the subsequent phase of their comprehensive cloud modernization project.
During the completed phase, Amdocs introduced an advanced cloud operations platform on AWS. This development considerably boosts the agility, responsiveness, and operational resilience of PLDT and Smart’s infrastructure. The enhanced capabilities allow the Philippines-based company to scale operations efficiently, optimize resource usage, and foster innovation, ultimately leading to an improved customer experience for their users.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Amdocs Ltd (DOX, Financial) is $101.69 with a high estimate of $111.00 and a low estimate of $91.56. The average target implies an upside of 8.96% from the current price of $93.33. More detailed estimate data can be found on the Amdocs Ltd (DOX) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Amdocs Ltd's (DOX, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Amdocs Ltd (DOX, Financial) in one year is $90.54, suggesting a downside of 2.99% from the current price of $93.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Amdocs Ltd (DOX) Summary page.
DOX Key Business Developments
Release Date: May 07, 2025
- Revenue: $1.13 billion, up 4% year-over-year in pro forma constant currency.
- Free Cash Flow: $181 million, excluding restructuring-related payments.
- Non-GAAP Earnings Per Share (EPS): $1.78, above guidance range.
- 12-Month Backlog: $4.17 billion, up 3.5% pro forma from a year ago.
- Non-GAAP Operating Margin: 21.3%, improved by 10 basis points sequentially.
- Managed Services Revenue: $747 million, up 3.7% year-over-year.
- Cash Balance: Approximately $324 million.
- Share Repurchase: $135 million repurchased; new $1 billion share repurchase plan authorized.
- Dividend Payments: $54 million in the second fiscal quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Amdocs Ltd (DOX, Financial) reported revenue of $1.13 billion for the second quarter, exceeding the midpoint of their guidance and marking a 4% increase from the previous year in pro forma constant currency.
- The company achieved a 10 basis point improvement in profitability sequentially, reflecting ongoing internal efficiency gains.
- Amdocs Ltd (DOX) generated robust free cash flow of $181 million, excluding restructuring-related payments, supported by healthy customer cash collection.
- The 12-month backlog increased to $4.17 billion, up by 3.5% pro forma from a year ago, indicating strong future revenue visibility.
- Amdocs Ltd (DOX) continues to see strong sales momentum in cloud services, with significant projects involving major partners like Microsoft and AWS, and expects double-digit growth in cloud-related revenue for fiscal 2025.
Negative Points
- Despite the positive revenue growth, reported revenue declined by 9.4% from a year ago due to the phaseout of certain low-margin business activities.
- The company is facing a challenging macroeconomic environment with rising global uncertainty, which could impact customer spending behavior.
- There is a potential risk of foreign currency fluctuations impacting financial results, as indicated by a $2 million negative impact in the second quarter.
- Amdocs Ltd (DOX) is closely monitoring the indirect impact of macroeconomic conditions on customer spending, which could affect future growth.
- The company has yet to see significant material contributions from AI-related projects, with many initiatives still in the proof-of-concept stage.
