We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is a Beat Likely for Tyler Technologies (TYL) in Q2 Earnings?
Read MoreHide Full Article
Tyler Technologies (TYL - Free Report) is likely to beat expectations when it reports second-quarter 2023 results after market close on Jul 26.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.86 per share, down 1% from the year-ago quarter’s earnings of $1.88. The consensus mark for revenues stands at $490.7 million, calling for a 4.7% increase from the year-ago quarter.
Tyler surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 2.8%.
In the last reported quarter, TYL’s non-GAAP earnings of $1.76 per share surpassed the Zacks Consensus Estimate by 5 cents. However, revenues of $471.9 million came slightly lower than the consensus mark of $473.7 million.
Let’s see how things have shaped up for the upcoming announcement.
Tyler’s second-quarter top line is likely to have benefited from the demand for its subscription-based software-as-a-service (SaaS) solutions as the public sector continued to transition from on-premise and outdated systems to scalable cloud-based systems. Our estimate for the company’s second-quarter Subscription segment revenues is pegged at $289.6 million, implying a year-over-year increase of 13.2%.
However, public sector entities’ continued shift to SaaS at an accelerated pace is likely to have negatively impacted Tyler’s Software Licenses and Royalties segment revenues. Our estimate suggests the said segment’s revenues to decline 37.1% year over year to $9.4 million.
The completion of COVID-19 initiatives is likely to have hurt the Professional Services segment’s top line. Our estimate for Professional Services revenues stands at $66.1 million, indicating a year-over-year decline of 8.1%.
Overall, our estimate for the company’s Total Subscriptions, Professional Services and Maintenance revenues, which include all the four abovementioned segments, is pegged at $469.4 million. This calls for a year-over-year increase of 5.6%.
In addition, the company’s closed acquisitions over the past 12 months are anticipated to have brought incremental revenues during the quarter under review. TYL bought three businesses in the last 12 months, namely Safeground Analytics, Rapid and Quatred.
However, ongoing macroeconomic and geopolitical issues might have disrupted Tyler’s business during the period in discussion. Inflationary pressures might have led public sector entities to delay procurement processes and lengthen sales cycles, which could have hurt Tyler’s revenues in the quarter under review.
Additionally, the acceleration in the shift to the cloud in the new business and the related decline in license revenues are likely to have weighed on operating margins. Also, higher operating expenses are expected to have clipped TYL’s profitability during the quarter to be reported.
Earnings Whispers
Our proven model predicts an earnings beat for Tyler this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.87 per share) and the Zacks Consensus Estimate ($1.86 per share), is +0.54%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: TYL sports a Zacks Rank #1.
Other Stocks With the Favorable Combination
Per our model, Apple (AAPL - Free Report) , Block (SQ - Free Report) and Alibaba (BABA - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +5.82%. The company is scheduled to report third-quarter fiscal 2023 results on Aug 3. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, with the average surprise being 2.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter. It is estimated to report revenues of $81.21 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Block is slated to report second-quarter 2023 results on Aug 3. The company has a Zacks Rank #3 and an Earnings ESP of +12.99% at present. Block’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on one occasion and matching it once, the average surprise being 22.6%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, suggesting a whopping increase of 94.4% from the year-ago quarter’s earnings of 18 cents. Block’s quarterly revenues are estimated to increase 15.4% year over year to $5.08 billion.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is anticipated to report first-quarter fiscal 2024 results on Aug 3. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for BABA’s first-quarter earnings is pegged at $1.90 per share, indicating a year-over-year increase of 8.6%. The consensus mark for revenues stands at $31.01 billion, suggesting a year-over-year rise of 1%.
Image: Bigstock
Is a Beat Likely for Tyler Technologies (TYL) in Q2 Earnings?
Tyler Technologies (TYL - Free Report) is likely to beat expectations when it reports second-quarter 2023 results after market close on Jul 26.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.86 per share, down 1% from the year-ago quarter’s earnings of $1.88. The consensus mark for revenues stands at $490.7 million, calling for a 4.7% increase from the year-ago quarter.
Tyler surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 2.8%.
In the last reported quarter, TYL’s non-GAAP earnings of $1.76 per share surpassed the Zacks Consensus Estimate by 5 cents. However, revenues of $471.9 million came slightly lower than the consensus mark of $473.7 million.
Let’s see how things have shaped up for the upcoming announcement.
Tyler Technologies, Inc. Price and EPS Surprise
Tyler Technologies, Inc. price-eps-surprise | Tyler Technologies, Inc. Quote
Factors to Consider
Tyler’s second-quarter top line is likely to have benefited from the demand for its subscription-based software-as-a-service (SaaS) solutions as the public sector continued to transition from on-premise and outdated systems to scalable cloud-based systems. Our estimate for the company’s second-quarter Subscription segment revenues is pegged at $289.6 million, implying a year-over-year increase of 13.2%.
However, public sector entities’ continued shift to SaaS at an accelerated pace is likely to have negatively impacted Tyler’s Software Licenses and Royalties segment revenues. Our estimate suggests the said segment’s revenues to decline 37.1% year over year to $9.4 million.
The completion of COVID-19 initiatives is likely to have hurt the Professional Services segment’s top line. Our estimate for Professional Services revenues stands at $66.1 million, indicating a year-over-year decline of 8.1%.
Overall, our estimate for the company’s Total Subscriptions, Professional Services and Maintenance revenues, which include all the four abovementioned segments, is pegged at $469.4 million. This calls for a year-over-year increase of 5.6%.
In addition, the company’s closed acquisitions over the past 12 months are anticipated to have brought incremental revenues during the quarter under review. TYL bought three businesses in the last 12 months, namely Safeground Analytics, Rapid and Quatred.
However, ongoing macroeconomic and geopolitical issues might have disrupted Tyler’s business during the period in discussion. Inflationary pressures might have led public sector entities to delay procurement processes and lengthen sales cycles, which could have hurt Tyler’s revenues in the quarter under review.
Additionally, the acceleration in the shift to the cloud in the new business and the related decline in license revenues are likely to have weighed on operating margins. Also, higher operating expenses are expected to have clipped TYL’s profitability during the quarter to be reported.
Earnings Whispers
Our proven model predicts an earnings beat for Tyler this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.87 per share) and the Zacks Consensus Estimate ($1.86 per share), is +0.54%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: TYL sports a Zacks Rank #1.
Other Stocks With the Favorable Combination
Per our model, Apple (AAPL - Free Report) , Block (SQ - Free Report) and Alibaba (BABA - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +5.82%. The company is scheduled to report third-quarter fiscal 2023 results on Aug 3. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, with the average surprise being 2.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter. It is estimated to report revenues of $81.21 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Block is slated to report second-quarter 2023 results on Aug 3. The company has a Zacks Rank #3 and an Earnings ESP of +12.99% at present. Block’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on one occasion and matching it once, the average surprise being 22.6%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, suggesting a whopping increase of 94.4% from the year-ago quarter’s earnings of 18 cents. Block’s quarterly revenues are estimated to increase 15.4% year over year to $5.08 billion.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is anticipated to report first-quarter fiscal 2024 results on Aug 3. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for BABA’s first-quarter earnings is pegged at $1.90 per share, indicating a year-over-year increase of 8.6%. The consensus mark for revenues stands at $31.01 billion, suggesting a year-over-year rise of 1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.