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Israeli CRM and billing systems company Amdocs (NASDAQ: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 also raised its Q3 guidance.

Globes quoted from a Merrill Lynch report on the earnings:

We attribute the strong performance to the first complete quarter of AT&T (NYSE:T) revenue recognition and better than expected execution at Sprint (NYSE: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 currently trading in. The company seems to 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.

Disclosure: The author’s fund has a position in DOX. He has no positions in any other stock mentioned as of July 24, 2008.

Source: Amdocs Beats Q2 Earnings Estimates; Raises Q3 Guidance