Latest news with #Amdocs
Forbes
02-06-2025
- Business
- Forbes
The Fusion Of 5G And Fiber Broadband: Building The Nervous System Of A New Digital Era
Abhishek Singh, Technology and Customer Business Executive at Amdocs, with 20+ years in IT, telecom, and network leadership. For years, 5G wireless and fiber broadband were treated as separate revolutions—each promising to transform industries in its own right. As I've watched the industry evolve, one thing has become clear: These two forces are converging into a single, dynamic foundation for the next digital era. We are not simply improving connectivity. We're laying down the nervous system of a new economy—one where speed, responsiveness and ubiquity become the baseline expectation. From what I've observed across multiple deployments and initiatives, the convergence of fiber and 5G is catalytic. Together, they're setting the stage for innovations we can barely imagine today. It's easy to think of 5G as a wireless marvel—fast, seamless, everywhere. Beneath the surface, however, every wireless experience relies on fiber. Fiber provides the high-capacity, low-latency backbone that 5G demands. Without dense fiber networks connecting small cells and towers, 5G would struggle to deliver the speed and reliability it's known for. This is true whether you're talking about high-band 5G lighting up city streets or low- and mid-band 5G covering rural areas. Wherever there's 5G, there's fiber doing the heavy lifting. Historically, fiber broadband and wireless networks grew up on separate paths. Broadband served homes and businesses. Wireless met the growing hunger for mobile data. As technology blurs the line between "fixed" and "mobile," building two separate infrastructures no longer makes sense. Today, forward-looking cities, carriers and enterprises are investing in integrated builds—laying fiber with future 5G expansion in mind. They're rethinking rights-of-way, small cell placement and access points to create networks that are not only faster but fundamentally more resilient. In my experience, the players who recognize this shift early—and design infrastructure with convergence at the core—will be the ones who lead. One of the biggest misconceptions I see is that this convergence only matters in major metros. In reality, rural and underserved areas stand to gain the most. Fiber alone can be expensive in low-density areas. Wireless alone can fall short without fiber-grade backhaul. Smart hybrid deployments of fiber-fed 5G can bridge the digital divide faster and more sustainably than ever before. This isn't just about faster internet. It's about enabling remote healthcare, precision agriculture, decentralized energy grids and new kinds of digital businesses in places that were previously left behind. When we think about converged infrastructure, it's easy to focus on today's benefits—better streaming, faster apps, smoother video calls. However, history shows us that the real breakthroughs come later. Just like 4G and broadband enabled the app economy, the fusion of fiber and 5G will be the launchpad for industries we can't fully predict yet—immersive AI-driven worlds, smart autonomous systems and real-time decentralized marketplaces, to name just a few. The most important lesson I've learned over 20 years in this industry is that infrastructure drives innovation. Build the right foundation, and extraordinary things follow. While the fusion of fiber broadband and 5G holds immense promise, several barriers could hinder its widespread adoption—especially across diverse geographies and economic landscapes. Deploying dense fiber networks to support small-cell 5G is capital-intensive and logistically complex, particularly in suburban and rural areas. The costs of trenching, permitting and last-mile connections can stall progress where it's needed most. Without broader public-private partnerships or policy support, equitable access remains a challenge. Many organizations still operate fiber and 5G infrastructures independently. This siloed approach increases complexity and limits agility. For the full benefits of convergence to be realized, service providers will need to modernize operations, unify platforms and adopt open, interoperable network architectures. As networks become more software-defined and distributed, the surface area for cyberthreats expands. A converged fiber-5G backbone must be built with embedded security—leveraging AI-based monitoring, zero-trust architectures and real-time anomaly detection. Energy usage from both high-capacity fiber and dense 5G deployments is a growing concern. Operators must balance performance with sustainability by optimizing power consumption and integrating greener infrastructure practices. To fully realize the value of fiber-fed 5G, the industry must take coordinated action by driving standardization, fostering cross-sector collaboration, advocating for supportive policy and designing networks with future connectivity demands in mind. These steps are crucial to ensure the benefits of this convergence are inclusive, resilient and scalable for years to come. Ultimately, the societies and companies that invest in converged fiber and 5G networks are betting on their future competitiveness. They're setting themselves up to lead whatever comes next. In a world where connectivity defines opportunity, infrastructure truly is destiny—and convergence is essential. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
27-05-2025
- Business
- Yahoo
3 Services Stocks with Questionable Fundamentals
Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. But cutbacks in corporate spending and the threat of new AI products have kept sentiment in check, and over the past six months, the industry has tumbled by 10.9%. This drawdown was worse than the S&P 500's 3.3% fall. A cautious approach is imperative when dabbling in these companies as many are also sensitive to the ebbs and flows of the broader economy. With that said, here are three services stocks we're passing on. Market Cap: $2.35 billion Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE:ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies. Why Is ASGN Risky? Annual sales declines of 6.7% for the past two years show its products and services struggled to connect with the market during this cycle Sales were less profitable over the last two years as its earnings per share fell by 11.6% annually, worse than its revenue declines Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.1 percentage points ASGN's stock price of $53.55 implies a valuation ratio of 10.6x forward P/E. To fully understand why you should be careful with ASGN, check out our full research report (it's free). Market Cap: $10.16 billion Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ:DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations. Why Do We Pass on DOX? New orders were hard to come by as its average backlog growth of 1.6% over the past two years underwhelmed Sales are projected to tank by 3.5% over the next 12 months as demand evaporates further 4.6 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $90.69 per share, Amdocs trades at 12.5x forward P/E. Check out our free in-depth research report to learn more about why DOX doesn't pass our bar. Market Cap: $4.08 billion With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE:MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally. Why Does MMS Fall Short? Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Free cash flow margin shrank by 5.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results Maximus is trading at $72.40 per share, or 11.3x forward P/E. If you're considering MMS for your portfolio, see our FREE research report to learn more. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Cisco (CSCO) To Report Earnings Tomorrow: Here Is What To Expect
Networking technology giant Cisco (NASDAQ:CSCO) will be announcing earnings results tomorrow after the bell. Here's what to look for. Cisco beat analysts' revenue expectations by 0.7% last quarter, reporting revenues of $13.99 billion, up 9.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts' billings estimates. Is Cisco a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Cisco's revenue to grow 10.7% year on year to $14.06 billion, a reversal from the 12.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cisco has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 0.8% on average. Looking at Cisco's peers in the it services & other tech segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 22.1%, missing analysts' expectations by 17.9%, and Amdocs reported a revenue decline of 9.4%, in line with consensus estimates. Applied Digital traded down 36% following the results while Amdocs was up 3.5%. Read our full analysis of Applied Digital's results here and Amdocs's results here. There has been positive sentiment among investors in the it services & other tech segment, with share prices up 12.6% on average over the last month. Cisco is up 7.2% during the same time and is heading into earnings with an average analyst price target of $67.29 (compared to the current share price of $61.54). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Amdocs (NASDAQ:DOX) Has Announced A Dividend Of $0.527
Amdocs Limited (NASDAQ:DOX) will pay a dividend of $0.527 on the 25th of July. This makes the dividend yield about the same as the industry average at 2.3%. We check all companies for important risks. See what we found for Amdocs in our free report. While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. The last dividend was quite easily covered by Amdocs' earnings. This indicates that quite a large proportion of earnings is being invested back into the business. The next year is set to see EPS grow by 7.5%. Assuming the dividend continues along recent trends, we think the payout ratio could be 43% by next year, which is in a pretty sustainable range. View our latest analysis for Amdocs The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was $0.62 in 2015, and the most recent fiscal year payment was $2.11. This implies that the company grew its distributions at a yearly rate of about 13% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock. Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Amdocs has seen EPS rising for the last five years, at 5.6% per annum. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 5 analysts we track are forecasting for Amdocs for free with public analyst estimates for the company. Is Amdocs not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
08-05-2025
- Business
- Yahoo
Amdocs (NASDAQ:DOX) Reports Q1 In Line With Expectations
Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ:DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations. "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. Revenue of $1.13 billion was up 4% from a year ago in pro forma(1) constant currency(2), and deal conversion was strong, led by continued sales momentum in cloud. Amdocs has won a deal to facilitate the migration of both Amdocs and non-Amdocs applications to Microsoft Azure for a Tier-1 European service provider, and we were also selected for the next phase of PLDT's cloud modernization journey in Philippines. Consumer Cellular, a new US client for Amdocs, has chosen our SaaS-based connectX solution to expedite the launch of new digital brands. We also extended our collaboration with NVIDIA and other GenAI partners to further evolve Amdocs' amAIz platform and to support the data and GenAI requirements of our customers," said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited. Revenue Guidance for Q2 CY2025 is $1.13 billion at the midpoint, roughly in line with what analysts were expecting Is now the time to buy Amdocs? Find out in our full research report . Telecom software provider Amdocs (NASDAQ:DOX) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 9.4% year on year to $1.13 billion. The company expects next quarter's revenue to be around $1.13 billion, close to analysts' estimates. Its non-GAAP profit of $1.78 per share was 4.5% above analysts' consensus estimates. Story Continues With $4.75 billion in revenue over the past 12 months, Amdocs is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it's challenging to maintain high growth rates when you've already captured a large portion of the addressable market. To expand meaningfully, Amdocs likely needs to tweak its prices, innovate with new offerings, or enter new markets. As you can see below, Amdocs's sales grew at a sluggish 2.8% compounded annual growth rate over the last five years. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. Amdocs Quarterly Revenue Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Amdocs's recent performance shows its demand has slowed as its revenue was flat over the last two years. Amdocs Year-On-Year Revenue Growth We can better understand the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Amdocs's backlog reached $4.17 billion in the latest quarter and averaged 1.6% year-on-year growth over the last two years. Because this number is in line with its revenue growth, we can see the company effectively balanced its new order intake and fulfillment processes. Amdocs Backlog This quarter, Amdocs reported a rather uninspiring 9.4% year-on-year revenue decline to $1.13 billion of revenue, in line with Wall Street's estimates. Company management is currently guiding for a 9.6% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 3.4% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Amdocs has been an efficient company over the last five years. It was one of the more profitable businesses in the business services sector, boasting an average operating margin of 14%. Analyzing the trend in its profitability, Amdocs's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Amdocs Trailing 12-Month Operating Margin (GAAP) In Q1, Amdocs generated an operating profit margin of 17.5%, up 5 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Amdocs's EPS grew at a decent 8.9% compounded annual growth rate over the last five years, higher than its 2.8% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't expand. Amdocs Trailing 12-Month EPS (Non-GAAP) Diving into Amdocs's quality of earnings can give us a better understanding of its performance. A five-year view shows that Amdocs has repurchased its stock, shrinking its share count by 16.7%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Amdocs Diluted Shares Outstanding In Q1, Amdocs reported EPS at $1.78, up from $1.56 in the same quarter last year. This print beat analysts' estimates by 4.5%. Over the next 12 months, Wall Street expects Amdocs's full-year EPS of $6.76 to grow 7.8%. Key Takeaways from Amdocs's Q1 Results We were impressed by how significantly Amdocs blew past analysts' full-year EPS guidance expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, EBITDA missed and its EPS guidance for next quarter missed. Overall, this print was mixed. The areas below expectations seem to be driving the move, and the stock traded down 3.5% to $86.26 immediately after reporting. Is Amdocs an attractive investment opportunity at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
