Amdocs (NYSE:DOX) will meet fourth-quarter forecasts, rules Credit Suisse First Boston. Moving on, though, investors what the billing and customer-care software company will do in 2000.
Amdocs' current share price incorporates expectations of 14.6% growth for the coming years, whereas CSFB thinks growth of 18% to 28% is entirely feasible. They rated the company a Strong Buy and set a 12-month target at $35 to $40.
Amdocs updated its investors with its Q4 forecasts upon buying CRM software maker Clarify from Nortel (NYSE:NT). CSFB's analysts see no room for surprises there.
Amdocs said it expects to report $415 million revenues and 35-cent earnings per share.
It shaved its 2002 forecasts to $1.9 billion revenues and earnings of $1.15 per share, based on estimates that Clarify will contribute $100 million revenues, and 1 cent to its EPS.
CSFB says the amended forecast for 2002 is worrying investors, as is murky visibility for next year. The analysts surmise that the concerns have sent estimates short by about 10%.
Not to worry, they say, even though Amdocs may be seeing a prolongation in sales cycle, demand for its products is strong, and it has several major contracts in its pipeline.