Overview
Amdocs Q3 revenue of $1.14 bln beats analyst expectations, per LSEG data
Adjusted EPS of $1.72 for Q3 beats estimates, per LSEG data
Revenue down 8.4% as reported, up 3.5% in pro forma constant currency
Outlook
Amdocs expects FY 2025 revenue growth of (10.0)%-(9.0)% as reported
Company anticipates FY 2025 pro forma revenue growth of 2.4%-3.4%
Amdocs sees Q4 2025 revenue between $1,125 mln and $1,165 mln
Company reiterates FY 2025 target for double-digit shareholder returns
Result Drivers
PHASE OUT - Revenue decline due to phase out of certain non-core business activities
EUROPEAN GROWTH - Record revenue in Europe, up 7.7% YoY
MANAGED SERVICES - Managed services revenue reached $771 mln, up 4.1% YoY
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.14 bln
$1.13 bln (5 Analysts)
Q3 Adjusted EPS
Beat
$1.72
$1.71 (4 Analysts)
Q3 EPS
$1.39
Q3 Net Income
$154.80 mln
Q3 Free Cash Flow
$212 mln
Q3 Revenue Growth
-8.4%
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Amdocs Ltd is $102.60, about 17.4% above its August 5 closing price of $84.79
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nACSfk8jta
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)