Israeli CRM and billing systems company Amdocs (DOX) has bested analyst estimates and come through with a record quarter. The company reported record revenue of $820 million in Q2, up 15% over Q2 ‘07, solidly beating the consensus estimate of $811.06 million. Non-GAAP net profit grew 9.9% to $132.5 million, or $0.61 per share, above the analysts’ consensus of $0.60. In addition, Amdocs raised Q3 guidance as well.
Globes quotes from a Merrill Lynch report on the earnings: “We attribute the strong performance to the first complete quarter of AT&T (T) revenue recognition and better than expected execution at Sprint (S). This is the second consecutive quarter that management has raised guidance while other telecom-exposed names have been much more conservative. We note that the company has a backlog of $2.42 billion, providing management good visibility into the next few quarters.”
Merrill put a $43 target on the stock, a huge premium to the $28-29 range the stock is trading in. The company seems to really be hitting on all cylinders and with another increase in guidance, once rationale comes back into the market, Amdocs potentially could hit the Merrill target.
Aaron Katsman, IsraelNewsletter.com
Disclosure: Author’s fund has a position in DOX. He has no positions in any other stock mentioned as of 7/24/08.
Please see our Disclaimer HERE.
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
Written by: Aaron Katsman | July 8, 2008
Aaron Katsman
IsraelNewsletter.com
Red Red Red- That’s what the tape shows,
the market is going down everyone knows;
Step up and buy stocks off we go,
Homer, what would you say to a bank failure, Doh!
Sub-prime, oil, inflation and a weak dollar are to blame,
A year ago wasn’t the situation the same?
What goes up must come down was Newtons claim to fame,
It looks like only the shorts will be left standing at the end of the game.
Israeli stocks in the US have been shown the door,
but at current valuations isn’t there a floor?
Bears point to Iran and potential war,
Bulls say deal after deal signed, a rally we are in for.
Silicom (SILC), Alvarion (ALVR), Zoran (ZRAN), Amdocs (DOX) the list has no end,
It doesn’t look like the reversal is just around the bend;
Global banks are stuck they have no money to lend,
It will take time for all the carnage to mend.
But be optimistic there are deals to be had,
What’s great today used to be bad.
If you hit refresh on your portfolio you are sure to be sad,
Don’t fret a few good days and buying stocks will again be a popular fad.
Disclosure: Author’s fund has a position in SILC, DOX, ZRAN, ALVR. He has no position in any other stock mentioned as of 7/08/08.
Please see our Disclaimer HERE.
NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.
Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
Aaron Katsman
IsraelNewsletter.com
Federal Reserve chairman Ben Bernanke’s tough talk on the US Dollar helped support the greenback against the major global currencies, but it caused a minor rally against the Israeli shekel. As a reminder, the shekel has been one of the world’s strongest currencies over the last year, and its strength, while serving as a seal of approval on the state of the Israeli economy, has crushed exporters as well as many Israeli hi-tech’s that sell globally but keep their R&D local, due to the fact that their expense line has increased from the currency differential. (Continue »)
What do you get when a leading revenue management firm teams up with leading telecom billing solutions
provider?
A pretty neat fraud detection and prevention solution with an expert delivery team.
Reporting in Globes this morning, ECtel (ECTX) announced a collaboration with Amdocs (DOX) in which ECtel will team up with Amdoc’s system integration services to market its FraudView product suite. The software allows advanced detection of fraudulent activity as part of customer acquisition, credit risk management, and new subscriber evaluation processes. (Continue »)
