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NIC (EGOV) to Report Q4 Earnings: What's in the Offing?
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NIC is set to report fourth-quarter 2020 results on Feb 11.
The Zacks Consensus Estimate for fourth-quarter earnings has been unrevised at 26 cents per share over the past 30 days, suggesting a 73.3% jump from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $122 million, calling for an increase of 40.2%, year on year.
Over the trailing four quarters, NIC’s earnings beat the Zacks Consensus Estimate twice and came in line in the remaining, the average surprise being 27.5%.
Let’s see how things have shaped up prior to the upcoming announcement.
NIC is anticipated to have benefited from solid traction in TourHealth, the company's new rapid COVID-19 testing solution with Impact Health and NEXT Marketing, along with increased payment processing contract wins.
NIC introduced TourHealth in Northwest Kansas, which adds to the established testing sites in Florida, South Carolina, Mississippi and Alabama. This is likely to have extended its coronavirus testing footprint, thereby driving top-line growth. Notably, the company projects TourHealth to contribute $17 million to the fourth-quarter revenues.
Further, the pandemic-induced social-distancing practices, which have shifted interaction between government and citizens online, instead of in-office, are likely to have spurred demand for NIC’s digital services among government partners.
Moreover, multi-year contract wins in Iowa and Florida for payment processing and digital government solutions is likely to have boosted the presence of NIC’s digital solutions in the to-be-reported quarter.
In addition, expansion of the company’s government partner base with extension of contract with Maryland and Wisconsin, along with the new state enterprise contract with the state of Oklahoma, is likely to have been a major positive.
Apart from this, strong adoption of NIC's Gov2Go solution as the key service offering for pandemic unemployment claims in the Commonwealth of Virginia is anticipated to have been a major growth driver during the quarter under review.
Moreover, steady implementation of TeleGov, NIC’s recently-launched online scheduling solution, which helps government reopen offices while adhering to social-distancing protocols and aid customer experience with reduced wait times, is anticipated to have contributed to top-line growth in the soon-to-be reported quarter.
However, revenues from the Federal Pre-Employment Screening Program might have been affected due to the pandemic-induced continued weakness in the trucking industry.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
NIC has an Earnings ESP of 0.00% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
CDW Corporation (CDW - Free Report) , another Zacks #2 Ranked stock, has an Earnings ESP of +3.40% at present.
Marvell Technology (MRVL - Free Report) has an Earnings ESP of +2.90% and currently carries a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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NIC (EGOV) to Report Q4 Earnings: What's in the Offing?
NIC is set to report fourth-quarter 2020 results on Feb 11.
The Zacks Consensus Estimate for fourth-quarter earnings has been unrevised at 26 cents per share over the past 30 days, suggesting a 73.3% jump from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $122 million, calling for an increase of 40.2%, year on year.
Over the trailing four quarters, NIC’s earnings beat the Zacks Consensus Estimate twice and came in line in the remaining, the average surprise being 27.5%.
Let’s see how things have shaped up prior to the upcoming announcement.
NIC Inc. Price and EPS Surprise
NIC Inc. price-eps-surprise | NIC Inc. Quote
Factors to Note
NIC is anticipated to have benefited from solid traction in TourHealth, the company's new rapid COVID-19 testing solution with Impact Health and NEXT Marketing, along with increased payment processing contract wins.
NIC introduced TourHealth in Northwest Kansas, which adds to the established testing sites in Florida, South Carolina, Mississippi and Alabama. This is likely to have extended its coronavirus testing footprint, thereby driving top-line growth. Notably, the company projects TourHealth to contribute $17 million to the fourth-quarter revenues.
Further, the pandemic-induced social-distancing practices, which have shifted interaction between government and citizens online, instead of in-office, are likely to have spurred demand for NIC’s digital services among government partners.
Moreover, multi-year contract wins in Iowa and Florida for payment processing and digital government solutions is likely to have boosted the presence of NIC’s digital solutions in the to-be-reported quarter.
In addition, expansion of the company’s government partner base with extension of contract with Maryland and Wisconsin, along with the new state enterprise contract with the state of Oklahoma, is likely to have been a major positive.
Apart from this, strong adoption of NIC's Gov2Go solution as the key service offering for pandemic unemployment claims in the Commonwealth of Virginia is anticipated to have been a major growth driver during the quarter under review.
Moreover, steady implementation of TeleGov, NIC’s recently-launched online scheduling solution, which helps government reopen offices while adhering to social-distancing protocols and aid customer experience with reduced wait times, is anticipated to have contributed to top-line growth in the soon-to-be reported quarter.
However, revenues from the Federal Pre-Employment Screening Program might have been affected due to the pandemic-induced continued weakness in the trucking industry.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
NIC has an Earnings ESP of 0.00% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Carrier Global Corporation (CARR - Free Report) has an Earnings ESP of +10.96% and carries a Zacks Rank of 2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
CDW Corporation (CDW - Free Report) , another Zacks #2 Ranked stock, has an Earnings ESP of +3.40% at present.
Marvell Technology (MRVL - Free Report) has an Earnings ESP of +2.90% and currently carries a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>