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Tyler (TYL) to Report Q4 Earnings: What's in the Cards?

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Tyler Technologies (TYL - Free Report) is slated to report fourth-quarter 2020 results on Feb 10.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.41 per share, suggesting a year-over-year decline of 1.4%. Further, the consensus mark for revenues is pinned at $290.86 million, calling for a 1.19% increase from the year-ago quarter.

In the trailing four quarters, Tyler’s earnings beat the Zacks Consensus Estimate on two occasions, matched in another, and missed in the remaining one, the average surprise being 7.53%.

In the last reported quarter, the company’s non-GAAP earnings of $1.50 per share surpassed the Zacks Consensus Estimate by 16 cents. Moreover, revenues of $285.9 million beat the consensus mark of $284.9 million.

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

Tyler Technologies, Inc. Price and EPS Surprise

Tyler Technologies, Inc. Price and EPS Surprise

Tyler Technologies, Inc. price-eps-surprise | Tyler Technologies, Inc. Quote

Key Factors

Tyler’s fourth-quarter performance is likely to have been positively impacted by lower expenses, which have more than offset revenue reductions as per the company’s pre-COVID plan. As a result, the year-over-year margin expansion is likely to have continued in the fourth quarter.

Furthermore, Tyler is likely to have won big-value deals in public safety during the fourth quarter of 2020, as the quarter was typically strong for the public safety sector.

However, revenues are likely to have continued to be negatively impacted by COVID-19-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.

Additionally, toward the end of the third quarter, Tyler faced an unauthorized third-party intrusion that disrupted access to some of its internal corporate network, phone systems and IT systems. This incident affected the company’s ability to deliver licenses and services well in October (early into the fourth quarter). The company currently estimates the impact on revenues to be approximately $2.5 million in the fourth quarter.

What Our Model Says

Our proven model does not conclusively 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 has a Zacks Rank of 3 and 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:

Vishay Intertechnology, Inc. (VSH - Free Report) has an Earnings ESP of +4.82% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank of 3, currently.

Adobe Inc. (ADBE - Free Report) has an Earnings ESP of +0.36% and currently, a Zacks Rank of 3.

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