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Recently, MICROS Systems, Inc.’s (MCRS - Analyst Report) MICROS OPERA and MICROS Simphony Enterprise Solutions have been selected by Apple Inc. (AAPL - Analyst Report). As per the association, the company will be engaged in controlling and supporting Apple’s latest Apple iPad Mini through its advanced services.
The addition of MICROS OPERA and MICROS Simphony platform to the Apple iPad Mini will be highly beneficial for the hospitality and retail industry. Now, through using iPad Mini, the clients in the hospitality industry would easily deploy the company’s solutions and enhance their services. We believe that the great reputation of Apple would seamlessly promote the goodwill and also augment market share for MICROS.
The company has emerged as a formidable player in the field of hotel information systems market. The company’s wide range of technology solutions such as point-of-sale solution (POS), OPERA Enterprise Solution (OES), Restaurant Enterprise Series (RES) and many other advanced platforms are being deployed by various noteworthy hotels, resorts and restaurant chains.
Recently, in the first quarter of fiscal 2013, the company reported revenues of $299.9 million, up 16.9% year over year but down 0.9% sequentially. The annual rise in the revenue was driven by the company’s organic growth as well as its recent acquisition of Torex Retail.
Various strategic contract wins hold future pledge for MICROS. The company confirmed winning a bunch of contracts from Carino’s Italian, Moran & Bewley’s Hotel Group, Delaware North Companies, Delta Hotels and Resorts, Aston Hotels & Resorts, LLC, Rex Restaurant Associates, Delaware North Companies and many more during fiscal 2012. We believe that these agreements are likely to heighten the company’s market share in future.
However, the company faces the risk of strong competition from various big and small industry players, which would affect MICROS’ profitability moving ahead. The company faces competition from NCR Corp. (NCR - Analyst Report) and PAR Technology Corporation (PAR - Snapshot Report). NCR reported revenues of $1.44 billion in the third quarter of 2012, up 5.5% from $1.36 billion in the year-ago quarter. Total revenue was positively impacted by the year-on-year increase in Financial Services, Hospitality and Emerging Industries revenue. Hence, the company has to innovate new products, reduce its production costs and raise its financial base to compete in the industry.
The current Zacks Consensus Estimates for the second quarter of fiscal 2013 and for fiscal 2013 are 53 cents and $2.24, respectively. The company currently retains a Zacks #3 Rank, which translates into a short-term “Hold” rating. Also, we are maintaining a long-term “Neutral” recommendation on the stock.
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