Amdocs 2025 Q2 Earnings Surges as Net Income Rises 37.3%
Generado por agente de IAAinvest Earnings Report Digest
lunes, 19 de mayo de 2025, 11:08 pm ET2 min de lectura
DOX--
Amdocs (DOX) reported its fiscal 2025 Q2 earnings on May 19th, 2025. The total revenue of AmdocsDOX-- decreased by 9.4% to $1.13 billion in 2025 Q2, down from $1.25 billion in 2024 Q2. Amdocs's EPS rose 43.1% to $1.46 in 2025 Q2 from $1.02 in 2024 Q2, marking continued earnings growth. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience. Despite the revenue decline, Amdocs exceeded expectations in its earnings per share, driven by improved profitability and operational efficiency. The firm reiterated its fiscal 2025 guidance, maintaining its outlook for revenue and earnings per share growth.
Revenue
Amdocs generated $1.13 billion in total revenue for 2025 Q2, with managed services arrangements contributing $747.11 million, while other segments added $381.10 million. This decrease reflects a 9.4% decline from the previous year.
Earnings/Net Income
Amdocs's EPS increased by 43.1% to $1.46, demonstrating solid performance. Net income rose to $164 million, marking a 37.3% increase from $119.42 million in 2024 Q2, indicating strong profitability improvements.
Post-Earnings Price Action Review
The strategy of buying DOXDOX-- following revenue beats and holding for 30 days returned 3.07%, lagging the benchmark by 52.36%. The low Sharpe ratio of 0.04 indicates poor risk-adjusted returns, highlighting significant risk with a maximum drawdown of -33.21% and volatility at 18.22%. This strategy poses challenges for risk-averse investors due to its high volatility and considerable drawdowns. While the approach offers positive returns, it significantly underperforms the benchmark, reflecting the need for cautious consideration when evaluating such strategies in the current market environment.
CEO Commentary
"Q2 was a good quarter for Amdocs as we executed our strategy to deliver the cloud, digital, and AI-based solutions our customers need to ensure amazing experiences and seamless connectivity for billions of people each day," said Shuky Sheffer, CEO of Amdocs Management Limited. Amdocs achieved strong deal conversion, particularly in cloud services, and recorded managed services revenue of $747 million, representing approximately 66% of total revenue. The company is well-positioned to navigate global macroeconomic uncertainties, supported by a rich deal pipeline and high renewal rates in managed services, reflecting its operational excellence and focus on automation and AI.
Guidance
Amdocs expects fiscal 2025 revenue growth to be in the range of (10.9)% to (9.1)% year-over-year as reported, with pro forma constant currency growth projected at 1.7% to 3.7%. The company anticipates GAAP diluted earnings per share to be in the range of 28.0% to 35.0% and non-GAAP diluted earnings per share growth of 6.5% to 10.5%. Free cash flow is expected to be between $710 million and $730 million for the full fiscal year 2025.
Additional News
Amdocs recently announced the appointment of Véronique Morali to its board of directors, effective May 5, 2025. This move is part of a broader strategy to strengthen corporate governance and leadership. In dividend and buyback news, Amdocs has authorized a new $1 billion share repurchase program, reflecting its commitment to returning capital to shareholders. Additionally, the company declared a quarterly dividend of $0.527 per share, payable on July 25, 2025, to shareholders of record as of June 30, 2025. These initiatives underscore Amdocs's focus on enhancing shareholder value amidst challenging market conditions.
Revenue
Amdocs generated $1.13 billion in total revenue for 2025 Q2, with managed services arrangements contributing $747.11 million, while other segments added $381.10 million. This decrease reflects a 9.4% decline from the previous year.
Earnings/Net Income
Amdocs's EPS increased by 43.1% to $1.46, demonstrating solid performance. Net income rose to $164 million, marking a 37.3% increase from $119.42 million in 2024 Q2, indicating strong profitability improvements.
Post-Earnings Price Action Review
The strategy of buying DOXDOX-- following revenue beats and holding for 30 days returned 3.07%, lagging the benchmark by 52.36%. The low Sharpe ratio of 0.04 indicates poor risk-adjusted returns, highlighting significant risk with a maximum drawdown of -33.21% and volatility at 18.22%. This strategy poses challenges for risk-averse investors due to its high volatility and considerable drawdowns. While the approach offers positive returns, it significantly underperforms the benchmark, reflecting the need for cautious consideration when evaluating such strategies in the current market environment.
CEO Commentary
"Q2 was a good quarter for Amdocs as we executed our strategy to deliver the cloud, digital, and AI-based solutions our customers need to ensure amazing experiences and seamless connectivity for billions of people each day," said Shuky Sheffer, CEO of Amdocs Management Limited. Amdocs achieved strong deal conversion, particularly in cloud services, and recorded managed services revenue of $747 million, representing approximately 66% of total revenue. The company is well-positioned to navigate global macroeconomic uncertainties, supported by a rich deal pipeline and high renewal rates in managed services, reflecting its operational excellence and focus on automation and AI.
Guidance
Amdocs expects fiscal 2025 revenue growth to be in the range of (10.9)% to (9.1)% year-over-year as reported, with pro forma constant currency growth projected at 1.7% to 3.7%. The company anticipates GAAP diluted earnings per share to be in the range of 28.0% to 35.0% and non-GAAP diluted earnings per share growth of 6.5% to 10.5%. Free cash flow is expected to be between $710 million and $730 million for the full fiscal year 2025.
Additional News
Amdocs recently announced the appointment of Véronique Morali to its board of directors, effective May 5, 2025. This move is part of a broader strategy to strengthen corporate governance and leadership. In dividend and buyback news, Amdocs has authorized a new $1 billion share repurchase program, reflecting its commitment to returning capital to shareholders. Additionally, the company declared a quarterly dividend of $0.527 per share, payable on July 25, 2025, to shareholders of record as of June 30, 2025. These initiatives underscore Amdocs's focus on enhancing shareholder value amidst challenging market conditions.
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