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What's in Store for Tyler (TYL) This Earnings Season?
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Tyler Technologies (TYL - Free Report) is slated to report third-quarter 2020 results on Nov 4.
The Zacks Consensus Estimate for earnings is pegged at $1.34, suggesting a year-over-year decline of 0.7%. Further, the consensus mark for revenues is pinned at $284.9 million, calling for a 2.8% increase from the year-ago quarter quarter.
In the trailing four quarters, Tyler’s earnings came in line with the Zacks Consensus Estimate on two occasions, beat in another, and missed in the other, the average surprise being 4.6%.
In the last reported quarter, Tyler’s non-GAAP earnings of $1.38 per share surpassed the Zacks Consensus Estimate by 22 cents. However, revenues of $271.3 million missed the consensus mark of $280.2 million.
Let’s see how things have shaped up prior to the upcoming announcement.
Key Factors
Tyler’s third-quarter performance is likely to have been negatively impacted by the COVID-19 pandemic-induced economic and business disruptions. During its second-quarter earnings conference call, the company had stated that the pandemic would affect its financial results during the second half of 2020.
Delays in procurement processes and lengthening sales cycles, as the public sector entities focus on issues related to the coronavirus crisis, might have eroded its revenues during the quarter under review. The company expects lower services revenues in the third quarter as some projects were delayed on client unavailability and billable travel was also reduced.
Additionally, increased investments in sales and marketing, and research and developments are likely to have weighed on its bottom line during the September-end period.
What Our Model Says
Our proven model does not predict 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. But that’s not the case here. 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 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Hologic, Inc. (HOLX - Free Report) has an Earnings ESP of +20.90% and carries a Zacks Rank of 2, currently.
Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently holds a Zacks Rank of 2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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What's in Store for Tyler (TYL) This Earnings Season?
Tyler Technologies (TYL - Free Report) is slated to report third-quarter 2020 results on Nov 4.
The Zacks Consensus Estimate for earnings is pegged at $1.34, suggesting a year-over-year decline of 0.7%. Further, the consensus mark for revenues is pinned at $284.9 million, calling for a 2.8% increase from the year-ago quarter quarter.
In the trailing four quarters, Tyler’s earnings came in line with the Zacks Consensus Estimate on two occasions, beat in another, and missed in the other, the average surprise being 4.6%.
In the last reported quarter, Tyler’s non-GAAP earnings of $1.38 per share surpassed the Zacks Consensus Estimate by 22 cents. However, revenues of $271.3 million missed the consensus mark of $280.2 million.
Let’s see how things have shaped up prior to the upcoming announcement.
Key Factors
Tyler’s third-quarter performance is likely to have been negatively impacted by the COVID-19 pandemic-induced economic and business disruptions. During its second-quarter earnings conference call, the company had stated that the pandemic would affect its financial results during the second half of 2020.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
Delays in procurement processes and lengthening sales cycles, as the public sector entities focus on issues related to the coronavirus crisis, might have eroded its revenues during the quarter under review. The company expects lower services revenues in the third quarter as some projects were delayed on client unavailability and billable travel was also reduced.
Additionally, increased investments in sales and marketing, and research and developments are likely to have weighed on its bottom line during the September-end period.
What Our Model Says
Our proven model does not predict 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. But that’s not the case here. 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 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Sunoco LP (SUN - Free Report) has an Earnings ESP of +1.00% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic, Inc. (HOLX - Free Report) has an Earnings ESP of +20.90% and carries a Zacks Rank of 2, currently.
Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently holds a Zacks Rank of 2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>