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What's in the Offing for Tyler (TYL) This Earnings Season?
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Tyler Technologies (TYL - Free Report) is slated to report second-quarter 2024 results after market close on Jul 24.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.34 per share, indicating an increase of 16.4% from the year-ago quarter. The consensus mark for revenues is pegged at $537.3 million, suggesting a 6.6% increase from the year-ago quarter.
Tyler surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.7%.
In the last reported quarter, TYL’s non-GAAP earnings of $2.20 per share surpassed the Zacks Consensus Estimate by 17 cents. The revenues of $512.4 million surpassed the consensus mark of $507.8 million.
Let’s see how things have shaped up for the upcoming announcement.
Tyler’s second-quarter revenues is likely to have been aided by the demand for its subscription-based software-as-a-service (SaaS) products as the public sector continues to shift from on-premise and backdated systems to scalable cloud-based frameworks. Our estimate for the company’s second-quarter Subscription segment revenues is pegged at $331.5 million, indicating a year-over-year increase of 11.3%.
Nevertheless, public sector entities’ continued transition to SaaS at an accelerated pace is likely to have affected TYL’s Software Licenses and Royalties segment revenues. Our estimate for the segment’s second-quarter revenues is pegged at $9.4 million.
Our estimate for Professional Services revenues is pinned at $67.8 million, indicating year-over-year growth of 2%. Our estimate of $115.3 million for the Maintenance segment’s second-quarter revenues suggests a year-over-year decrease of 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 $514.7 million. The figure indicates a year-over-year increase of 7.1%.
Furthermore, Tyler’s closed acquisitions over the last 12 months are anticipated to have contributed to its top line during the quarter under review. TYL acquired two businesses in the past 12 months, namely ARInspect and ResourceX.
However, ongoing macroeconomic and geopolitical headwinds might have weighed down Tyler’s business during the period in discussion. Moreover, the still-high interest rate and protracted inflationary conditions are expected to have led public sector entities to postpone procurement processes and lengthen sales cycles, which might have hurt TYL’s top line 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 #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 Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks’ shares have gained 40.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
The Zacks Consensus Estimate for ANET’s second-quarter 2024 earnings has been revised upward by a penny to $1.94 per share over the past seven days and indicates an improvement of 22.8% from the year-ago quarter’s earnings of $1.58. The consensus mark for revenues is pegged at $1.64 billion, indicating a 12.4% increase from the year-ago quarter.
Meta Platforms (META - Free Report) has an Earnings ESP of +1.35% and a Zacks Rank #3 at present. Shares of Meta Platforms have gained 34.7% year to date. META is set to report second-quarter 2024 results on Jul 31.
The Zacks Consensus Estimate for META’s second-quarter 2024 earnings has been revised upward by 2 cents per share to $4.68 over the past 30 days and indicates an improvement of approximately 45% from the year-ago quarter’s earnings of $3.23. The consensus mark for revenues is pegged at $38.19 billion, indicating a 19.4% increase from the year-ago quarter.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present. GoDaddy’s shares have gained 36.8% year to date. GDDY is set to report second-quarter 2024 results on Aug 1.
The Zacks Consensus Estimate for GDDY’s second-quarter 2024 earnings has remained unchanged at $1.07 over the past 60 days, indicating an improvement of 69.8% from the year-ago quarter. The consensus mark for revenues is pegged at $1.11 billion, indicating a 6.3% increase from the year-ago quarter.
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What's in the Offing for Tyler (TYL) This Earnings Season?
Tyler Technologies (TYL - Free Report) is slated to report second-quarter 2024 results after market close on Jul 24.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.34 per share, indicating an increase of 16.4% from the year-ago quarter. The consensus mark for revenues is pegged at $537.3 million, suggesting a 6.6% increase from the year-ago quarter.
Tyler surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.7%.
In the last reported quarter, TYL’s non-GAAP earnings of $2.20 per share surpassed the Zacks Consensus Estimate by 17 cents. The revenues of $512.4 million surpassed the consensus mark of $507.8 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 revenues is likely to have been aided by the demand for its subscription-based software-as-a-service (SaaS) products as the public sector continues to shift from on-premise and backdated systems to scalable cloud-based frameworks. Our estimate for the company’s second-quarter Subscription segment revenues is pegged at $331.5 million, indicating a year-over-year increase of 11.3%.
Nevertheless, public sector entities’ continued transition to SaaS at an accelerated pace is likely to have affected TYL’s Software Licenses and Royalties segment revenues. Our estimate for the segment’s second-quarter revenues is pegged at $9.4 million.
Our estimate for Professional Services revenues is pinned at $67.8 million, indicating year-over-year growth of 2%. Our estimate of $115.3 million for the Maintenance segment’s second-quarter revenues suggests a year-over-year decrease of 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 $514.7 million. The figure indicates a year-over-year increase of 7.1%.
Furthermore, Tyler’s closed acquisitions over the last 12 months are anticipated to have contributed to its top line during the quarter under review. TYL acquired two businesses in the past 12 months, namely ARInspect and ResourceX.
However, ongoing macroeconomic and geopolitical headwinds might have weighed down Tyler’s business during the period in discussion. Moreover, the still-high interest rate and protracted inflationary conditions are expected to have led public sector entities to postpone procurement processes and lengthen sales cycles, which might have hurt TYL’s top line 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 #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 Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks (ANET - Free Report) has an Earnings ESP of +0.95% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks’ shares have gained 40.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
The Zacks Consensus Estimate for ANET’s second-quarter 2024 earnings has been revised upward by a penny to $1.94 per share over the past seven days and indicates an improvement of 22.8% from the year-ago quarter’s earnings of $1.58. The consensus mark for revenues is pegged at $1.64 billion, indicating a 12.4% increase from the year-ago quarter.
Meta Platforms (META - Free Report) has an Earnings ESP of +1.35% and a Zacks Rank #3 at present. Shares of Meta Platforms have gained 34.7% year to date. META is set to report second-quarter 2024 results on Jul 31.
The Zacks Consensus Estimate for META’s second-quarter 2024 earnings has been revised upward by 2 cents per share to $4.68 over the past 30 days and indicates an improvement of approximately 45% from the year-ago quarter’s earnings of $3.23. The consensus mark for revenues is pegged at $38.19 billion, indicating a 19.4% increase from the year-ago quarter.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +13.08% and a Zacks Rank #3 at present. GoDaddy’s shares have gained 36.8% year to date. GDDY is set to report second-quarter 2024 results on Aug 1.
The Zacks Consensus Estimate for GDDY’s second-quarter 2024 earnings has remained unchanged at $1.07 over the past 60 days, indicating an improvement of 69.8% from the year-ago quarter. The consensus mark for revenues is pegged at $1.11 billion, indicating a 6.3% increase from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.