Tyler (TYL) to Report Q2 Earnings: What's in the Offing?
Tyler Technologies TYL is set to report second-quarter 2022 results on Jul 27.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.83 per share, flat with the year-ago quarter. Further, the consensus mark for revenues stands at $456.2 million, calling for a 12.5% increase from the year-ago quarter.
Tyler has surpassed the Zacks Consensus Estimate in the trailing four quarter, the average surprise being 8.6%.
In the last reported quarter, TYL’s non-GAAP earnings of $1.90 per share surpassed the Zacks Consensus Estimate by 13 cents. Moreover, revenues of $456.1 million beat the consensus mark of $435.3 million.
Let’s see how things have shaped up for the upcoming announcement.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
Factors to Note Ahead of Q2 Results
Tyler’s second-quarter performance is likely to have benefited from the public sector’s ongoing transition from the on-premise and outdated systems to scalable cloud-based systems. It has been continuously advancing its core software applications and expanding the complementary product and service portfolios to fulfill the changing needs of customers and respond to technological advancements.
The COVID-19 outbreak disrupted almost every area of the federal government through mandated shutdowns, which led to the growing demand for contactless, digital interaction and transactions with the government among citizens and businesses. With markets rebounding to pre-pandemic levels as evident from an upsurge in market trends, high-level areas in state governments are focusing on transforming their operations digitally. This trend is likely to have aided Tyler’s results during the quarter under review.
Tyler’s second-quarter performance is likely to have been positively impacted by big-value deals in public safety. In addition, the company’s closed acquisitions over the past 12 months are anticipated to have brought incremental revenues during the quarter under review. The company bought four businesses in the last 12 months, namely VendEngine, Arx, US eDirect and Quatred.
However, the ongoing macroeconomic and geopolitical issues might have disrupted the company’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.
Apart from this, higher employee healthcare expenses are expected to have clipped TYL’s operating margins 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.
Tyler currently carries a Zacks Rank of 3 and 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, Valero Energy VLO, PBF Energy PBF and Apple AAPL have the right combination of elements to post an earnings beat in their upcoming releases.
Valero sports a Zacks Rank #1 and has an Earnings ESP of +10.22%. The company is scheduled to report second-quarter 2022 results on Jul 28. Valero’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 84.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLO’s second-quarter earnings is pegged at $8.78 per share, indicating a sharp improvement from the year-ago quarter’s earnings of 48 cents per share. The consensus mark for revenues stands at $39.7 billion, suggesting a year-over-year increase of 42.9%.
PBF Energy currently sports a Zacks Rank #1 and has an Earnings ESP of +20.67%. The company is slated to report its second-quarter 2022 results on Jul 28. PBF Energy’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 61.5%.
The Zacks Consensus Estimate for PBF Energy’s second-quarter earnings stands at $6.57 per share, implying a strong improvement from the year-ago quarter’s loss of $1.26. PBF is estimated to report revenues of $9.8 billion, which suggests growth of 42.3% from the year-ago quarter.
Apple is slated to report third-quarter fiscal 2022 results on Jul 28. The company carries a Zacks Rank #3 and has an Earnings ESP of +0.88% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 11.9%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.13 per share, suggesting a year-over-year decline of 13.1%. AAPL’s quarterly revenues are estimated to increase 0.5% year over year to $81.9 billion.
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