Amdocs Q4 adjusted EPS slightly misses estimates

Overview

• Telecom software provider's Q4 revenue was flat yr/yr, meeting analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company approved a 3% increase in quarterly dividend, subject to shareholder approval

Outlook

• Company expects Q1 2027 revenue of $955-$995 mln

Result Drivers

• MANAGED SERVICES - Managed services revenue accounted for 61% of total Q4 revenue, but declined 3% yr/yr

• CURRENCY IMPACT - Q4 revenue included a negative impact from foreign currency movements

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "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 Limited is $73.45, about 15.6% above its November 2 closing price of $63.54

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)