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Tyler Technologies (TYL) to Report Q2 Earnings: What to Expect?

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Tyler Technologies (TYL - Free Report) is slated to report second-quarter 2020 results on Jul 29.

During its first-quarter earnings call, the company had suspended the guidance for full-year 2020 on uncertainties related to the coronavirus pandemic’s impact on the economy.

The Zacks Consensus Estimate for earnings is pegged at $1.16, suggesting a year-over-year decline of 10.8%. Further, the consensus mark for revenues is pinned at $284.2 million, calling for an increase of 0.8% from the year-ago quarter’s reported figure.

In the trailing four quarters, Tyler’s earnings have matched the Zacks Consensus Estimate on three occasions and missed in one, the average negative surprise being 0.2%.

In the last reported quarter, Tyler’s non-GAAP earnings of $1.25 per share missed the Zacks Consensus Estimate by a penny. Moreover, revenues of $276.8 million missed the consensus mark of $282 million.

Let’s see how things have shaped up prior to the upcoming announcement.

Key Factors

Tyler’s second-quarter performance is likely to have been negatively impacted by economic and business disruptions due to the coronavirus crisis. During the first-quarter earnings release, the company had stated that the pandemic would affect its second-quarter performance.

Delays in procurement processes and lengthening sales cycles, as public sector entities are now more focused on pandemic-related issues, might have hurt its revenues in the quarter under review. The company expects lower services revenues in the quarter as some projects were delayed on client unavailability and billable travel was reduced.

Further, roughly $6 million of revenues under hardware and other revenues might have been eliminated in the second quarter as a result of cancellation of the company’s Connect conference.

Additionally, increased investments in sales and marketing, and research and developments are likely to have weighed on its bottom line.

What Our Model Says

Our proven model predicts an earnings beat for Tyler this season.The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Tyler currently carries a Zacks Rank of 3 and has an Earnings ESP of +4.13%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Synaptics (SYNA - Free Report) has an Earnings ESP of +10.6% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Facebook has an Earnings ESP of +5.28% and currently carries a Zacks Rank of 3.

Alphabet (GOOGL - Free Report) has an Earnings ESP of +0.32% and carries a Zacks Rank of 3, currently.

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