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The Zacks Consensus Estimate for first-quarter revenues is pegged at $556 million, suggesting an 8.5% increase from the year-ago quarter.
The consensus mark for earnings is pegged at $2.56 per share, indicating an increase of 16.4% from the year-ago quarter. The bottom-line estimate has been revised upward by a couple of cents in the past 60 days.
TYL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.8%.
Tyler Technologies’ first-quarter revenues are likely to have been driven 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 first-quarter Subscription segment revenues is pegged at $361.7 million, indicating a year-over-year increase of 15.5%.
Nevertheless, public sector entities’ 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 first-quarter revenues is pegged at $7.1 million, indicating an 18.7% year-over-year decline.
Our estimate for Professional Services’ first-quarter revenues is pinned at $64.5 million, indicating a year-over-year decline of 0.4%. Our estimate of $114 million for the Maintenance segment’s first-quarter revenues suggests a year-over-year decrease of 2.7%. Overall, our estimate for the company’s Total Subscriptions, Professional Services and Maintenance revenues, which include all four abovementioned segments, is pegged at $540.2 million. The figure indicates a year-over-year increase of 9.1%.
However, macroeconomic and geopolitical risks might have negated Tyler Technologies’ business during the first quarter. Still-high interest rates and persistent inflationary conditions are expected to have led public sectors to postpone procurement processes and lengthen sales cycles, which might have hurt the company’s top line in the quarter under review.
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.
Earnings Whispers for Tyler Technologies
Our proven model does not conclusively predict an earnings beat for Tyler Technologies this time. 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, which is not the case here.
Though TYL carries a Zacks Rank #2, it has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
It is set to report first-quarter 2025 results on April 23. The Zacks Consensus Estimate for Check Point Software’s first-quarter earnings per share (EPS) is pegged at $2.19, unchanged over the past 60 days. Shares of Check Point Software have risen 35.3% over the past year.
Corning (GLW - Free Report) is set to report first-quarter 2025 results on April 29. It has an Earnings ESP of +2.00% and carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Corning’s first-quarter earnings is pegged at 50 cents per share, unchanged over the past 60 days, indicating an increase of 31.6% from the year-ago quarter’s reported figure. Shares of Corning have soared 31.6% over the past year.
Qorvo (QRVO - Free Report) is set to report fourth-quarter fiscal 2025 results on April 29. It has an Earnings ESP of +3.42% and carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Qorvo’s fourth-quarter earnings is pegged at $1.01 per share, revised upward by a penny over the past 60 days. The consensus mark indicates a year-over-year decline of 27.3%. Qorvo shares have tanked 46.2% over the past year.
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Tyler Technologies to Report Q1 Earnings: What's in Store?
Tyler Technologies, Inc. (TYL - Free Report) is scheduled to report first-quarter 2025 results on April 23, after market close.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $556 million, suggesting an 8.5% increase from the year-ago quarter.
The consensus mark for earnings is pegged at $2.56 per share, indicating an increase of 16.4% from the year-ago quarter. The bottom-line estimate has been revised upward by a couple of cents in the past 60 days.
TYL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.8%.
Tyler Technologies, Inc. Price and EPS Surprise
Tyler Technologies, Inc. price-eps-surprise | Tyler Technologies, Inc. Quote
Factors to Note Ahead of Tyler’s Q1 Results
Tyler Technologies’ first-quarter revenues are likely to have been driven 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 first-quarter Subscription segment revenues is pegged at $361.7 million, indicating a year-over-year increase of 15.5%.
Nevertheless, public sector entities’ 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 first-quarter revenues is pegged at $7.1 million, indicating an 18.7% year-over-year decline.
Our estimate for Professional Services’ first-quarter revenues is pinned at $64.5 million, indicating a year-over-year decline of 0.4%. Our estimate of $114 million for the Maintenance segment’s first-quarter revenues suggests a year-over-year decrease of 2.7%. Overall, our estimate for the company’s Total Subscriptions, Professional Services and Maintenance revenues, which include all four abovementioned segments, is pegged at $540.2 million. The figure indicates a year-over-year increase of 9.1%.
However, macroeconomic and geopolitical risks might have negated Tyler Technologies’ business during the first quarter. Still-high interest rates and persistent inflationary conditions are expected to have led public sectors to postpone procurement processes and lengthen sales cycles, which might have hurt the company’s top line in the quarter under review.
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.
Earnings Whispers for Tyler Technologies
Our proven model does not conclusively predict an earnings beat for Tyler Technologies this time. 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, which is not the case here.
Though TYL carries a Zacks Rank #2, it has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Check Point Software (CHKP - Free Report) has an Earnings ESP of +1.71% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is set to report first-quarter 2025 results on April 23. The Zacks Consensus Estimate for Check Point Software’s first-quarter earnings per share (EPS) is pegged at $2.19, unchanged over the past 60 days. Shares of Check Point Software have risen 35.3% over the past year.
Corning (GLW - Free Report) is set to report first-quarter 2025 results on April 29. It has an Earnings ESP of +2.00% and carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Corning’s first-quarter earnings is pegged at 50 cents per share, unchanged over the past 60 days, indicating an increase of 31.6% from the year-ago quarter’s reported figure. Shares of Corning have soared 31.6% over the past year.
Qorvo (QRVO - Free Report) is set to report fourth-quarter fiscal 2025 results on April 29. It has an Earnings ESP of +3.42% and carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Qorvo’s fourth-quarter earnings is pegged at $1.01 per share, revised upward by a penny over the past 60 days. The consensus mark indicates a year-over-year decline of 27.3%. Qorvo shares have tanked 46.2% over the past year.