Amdocs shares rise as order backlog grows
NEW YORK – Shares of Amdocs Ltd. jumped Thursday after the supplier of billing software and services for phone companies said its quarterly order backlog rose 9 percent to $1.96 billion from several new contracts.In afternoon trading, Amdocs shares were at $37.27, up $3.82, or 11 percent, on the New York Stock Exchange.The company is poised to benefit from key third-quarter deals, like that with Rogers Communications Inc. in Canada and Australia-based Telstra Corp., while it also expands its European opportunities with its recent purchase of Britain’s Cramer Systems, Kaufman Brothers’ analyst Peter Jacobson said.Late Wednesday, Amdocs said it expects earnings of 41 cents to 42 cents a share, or 49 cents a share on a pro forma basis, in the quarter ending in September. Analysts, on average, had been expecting earnings of 47 cents a share.For the quarter that ended in June, Amdocs reported net earnings of $85.6 million, or 39 cents a share, up 11 percent from $77.1 million, or 36 cents a share, a year earlier.Revenue in the latest quarter rose 23 percent to $626.4 million from $507.4 million.Deutsche Bank analyst Thomas Ernst said he was encouraged the company’s backlog was up. Most of the increase in Amdocs’ backlog came from organic growth, while about $40 million came from Qpass, which Amdocs acquired in April for $275 million, he said.Amdocs is incorporated on the island of Guernsey in the English Channel. Its executive headquarters are in Chesterfield, Mo.
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