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The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.86 per share, up 12.1% from the year-ago quarter’s earnings of $1.66. The consensus mark for revenues stands at $483.3 million, calling for a 6.9% increase from the year-ago quarter.
Tyler surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 3.8%.
In the last reported quarter, TYL’s non-GAAP earnings of $2.14 per share surpassed the Zacks Consensus Estimate by 17 cents. However, revenues of $494.7 million missed the consensus mark of $495.5 million.
Let’s see how things have shaped up for the upcoming announcement.
Tyler’s fourth-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software-as-a-service (SaaS) solutions as the public sector continues to transition from on-premise and outdated systems to scalable cloud-based systems. Our estimate for the company’s fourth-quarter Subscription segment revenues is pegged at $281.9 million, implying a year-over-year increase of 9.8%.
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 for the segment’s fourth-quarter revenues is pegged at $10.3 million.
Our estimate for Professional Services revenues stands at $65.2 million, indicating a year-over-year decline of 9.2%. Our estimate of $115.4 million for the Maintenance segment’s third-quarter revenues suggests a year-over-year decrease of 1.7%.
Overall, our estimate for the company’s Total Subscriptions, Professional Services and Maintenance revenues, which include all the four abovementioned segments, is pegged at $472.5 million. This calls for a year-over-year increase of 6.5%.
In addition, Tyler’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 ARInspect, ResourceX and Computing System Innovations or CSI and Safeground Analytics.
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.
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 a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though Tyler currently carries a Zacks Rank of #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, NVIDIA (NVDA - Free Report) , AutoZone (AZO - Free Report) and Block (SQ - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA carries a Zacks Rank #2 and has an Earnings ESP of +5.26%. The company is scheduled to report fourth-quarter 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s fourth-quarter earnings is pegged at $4.51 per share, indicating a year-over-year increase of 412.5%. The consensus mark for revenues stands at $20.18 billion, calling for a year-over-year rise of 233.5%.
AutoZone is slated to report second-quarter fiscal 2024 results on Feb 27. The company has a Zacks Rank #3 and an Earnings ESP of +3.83% at present. AutoZone’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.9%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $26.18 per share, suggesting an increase of 6.3% from the year-ago quarter’s earnings of $24.64. AutoZone’s quarterly revenues are estimated to improve 4.4% to $3.85 billion.
Block carries a Zacks Rank #3 and has an Earnings ESP of +1.05%. The company is scheduled to report fourth-quarter 2023 results on Feb 22. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 11%.
The Zacks Consensus Estimate for Block’s fourth-quarter earnings stands at 60 cents per share, indicating a year-over-year improvement of 172.7%. It is estimated to report revenues of $5.69 billion, which suggests an increase of approximately 22.3% from the year-ago quarter.
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Tyler Technologies (TYL) to Report Q4 Earnings: What's in Store?
Tyler Technologies (TYL - Free Report) is slated to report fourth-quarter 2023 results after market close on Feb 14.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.86 per share, up 12.1% from the year-ago quarter’s earnings of $1.66. The consensus mark for revenues stands at $483.3 million, calling for a 6.9% increase from the year-ago quarter.
Tyler surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 3.8%.
In the last reported quarter, TYL’s non-GAAP earnings of $2.14 per share surpassed the Zacks Consensus Estimate by 17 cents. However, revenues of $494.7 million missed the consensus mark of $495.5 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 fourth-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 continues to transition from on-premise and outdated systems to scalable cloud-based systems. Our estimate for the company’s fourth-quarter Subscription segment revenues is pegged at $281.9 million, implying a year-over-year increase of 9.8%.
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 for the segment’s fourth-quarter revenues is pegged at $10.3 million.
Our estimate for Professional Services revenues stands at $65.2 million, indicating a year-over-year decline of 9.2%. Our estimate of $115.4 million for the Maintenance segment’s third-quarter revenues suggests a year-over-year decrease of 1.7%.
Overall, our estimate for the company’s Total Subscriptions, Professional Services and Maintenance revenues, which include all the four abovementioned segments, is pegged at $472.5 million. This calls for a year-over-year increase of 6.5%.
In addition, Tyler’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 ARInspect, ResourceX and Computing System Innovations or CSI and Safeground Analytics.
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.
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 a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though Tyler currently carries a Zacks Rank of #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, NVIDIA (NVDA - Free Report) , AutoZone (AZO - Free Report) and Block (SQ - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA carries a Zacks Rank #2 and has an Earnings ESP of +5.26%. The company is scheduled to report fourth-quarter 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s fourth-quarter earnings is pegged at $4.51 per share, indicating a year-over-year increase of 412.5%. The consensus mark for revenues stands at $20.18 billion, calling for a year-over-year rise of 233.5%.
AutoZone is slated to report second-quarter fiscal 2024 results on Feb 27. The company has a Zacks Rank #3 and an Earnings ESP of +3.83% at present. AutoZone’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.9%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $26.18 per share, suggesting an increase of 6.3% from the year-ago quarter’s earnings of $24.64. AutoZone’s quarterly revenues are estimated to improve 4.4% to $3.85 billion.
Block carries a Zacks Rank #3 and has an Earnings ESP of +1.05%. The company is scheduled to report fourth-quarter 2023 results on Feb 22. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 11%.
The Zacks Consensus Estimate for Block’s fourth-quarter earnings stands at 60 cents per share, indicating a year-over-year improvement of 172.7%. It is estimated to report revenues of $5.69 billion, which suggests an increase of approximately 22.3% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.