DOX

Amdocs Ltd

TMT


Presented:06/14/2019
Price:$61.29
Cap:$8.40B
Current Price:$88.73
Cap:$10.13B

Presented

Date06/14/2019
Price$61.29
Market Cap$8.40B
Ent Value$7.05B
P/E Ratio23.82x
Book Value$25.16
Div Yield1.86%
Shares O/S137.13M
Ave Daily Vol867,583
Short Int2.74%

Current

Price$88.73
Market Cap$10.13B
Amdocs Ltd. is a holding company, which engages in the provision of software and services solutions for communications, entertainment, and media industries. It specializes in the development, implementation, and management of software and services associate with business support systems, operational support systems, service-driven network and other network solutions, entertainment offerings, and digital solutions. The company was founded in 1988 and is headquartered in Chesterfield, MO.

Publicly traded companies mentioned herein: Amdocs Ltd (DOX), AT&T Inc (T)

Highlights

The presenter is short shares of outsourced billing solutions provider Amdocs (DOX), which works primarily with global telecom/wireless carriers such as AT&T (~30% of revenue until just recently), and has increased conviction in the position after reading the most recent 6-K which was filed on 5/28/19. In early Q1 ‘19, Spruce Point released a short thesis on DOX, citing a number of earnings quality and growth-related issues that have been “dogging the company for two years.” Then, when the company reported Q2 ‘19 earnings (May 14; the company’s fiscal year ends in Sept), “literally everything was cleaned up.” However, the 6-K revealed a material benefit to earnings via ASC 606, and that rekindled the suspicion that earnings are being manufactured and could be at risk of a 20% decline going forward (despite MSD% Street EPS growth expectations).

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Idea Discussion

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