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NICE Benefits From Expanding Portfolio and Partner Base

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NICE (NICE - Free Report) is riding on its strong product portfolio and innovative pipeline. Moreover, an expanding partner base is noteworthy.

The company recently announced the launch of its advanced, X-Sight Entity Risk SaaS solution, which produces a single-risk score that provides a financial institution meaningful insight into its clients across the organization.

X-Sight Entity is powered by AI, machine learning, entity resolution and network analytics. The latest solution helps enterprises prevent fraud and enhances the efficiency of anti-money laundering applications.

NICE’s solutions like Inform Elite, Actimize, Robotic Process Automation and Investigate have been gaining traction in recent times. The expanding availability of NICE products on different platforms is also helping the company win customers frequently.

This month, NICE announced that its next-generation NTR-X solution is now available for compliance recording capture for communications done via Zoom (ZM - Free Report) , including Zoom Meetings and Zoom Phone.

Nice Price and Consensus

Nice Price and Consensus

Nice price-consensus-chart | Nice Quote

An early adopter partner, NICE collaborated with Zoom to create and utilize new APIs for financial markets’ compliance recording.

NICE is benefiting from an expanding customer base that is driving the top line. In the fourth quarter of 2021, revenues increased 18.6% year over year to $515.5 million, beating the Zacks Consensus Estimate by 3.6%. Earnings of $1.73 per share beat the consensus mark by 1.8% and increased 7.5% year over year.

NICE’s partnership with Alphabet (GOOGL - Free Report) and BCE (BCE - Free Report) is also helping it win customers.

NICE’s AI-powered CXone will be integrated with Google Cloud’s Contact Center Artificial Intelligence (CCAI) applications to make self-service bots and agent-facing virtual assistants more effective.

The collaboration will enable businesses to expand their customer self-service capabilities using Alphabet-owned Google Cloud’s CCAI by integrating conversational bots.

BCE, Canada's largest communications company, entered into an agreement with NICE to expand access to its CXone for Contact Center as a Service in Canada.

Positive Guidance

For 2022, NICE expects revenues between $2.140 billion and $2.160 billion, representing 12% growth at the midpoint from the figure reported in the previous year. Earnings are now expected between $7.07 and $7.27 per share, representing 10% growth at the midpoint from the figure reported in the previous year.

The Zacks Consensus Estimate for 2022 earnings, pegged at $7.18 per share, has remained unchanged over the past 30 days. The consensus mark for revenues stands at $2.15 billion, indicating 11.8% growth from the figure reported in the previous year.

Revenues for the first quarter of 2022 are expected between $505 million and $515 million. Earnings are expected in the $1.65-$1.75 per share range.

The Zacks Consensus Estimate for first-quarter of 2022 earnings is pegged at $1.70 per share, unchanged over the past 30 days. The consensus mark for revenues stands at $510.6 million, indicating 11.8% growth from the figure reported in the previous year.

NICE shares have dropped 28.2% year to date, outperforming the Zacks Internet Software industry’s decline of 29.5%, but lagging the Zacks Computer & Technology sector’s decline of 12.3%.

NICE currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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