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What's in the Offing for Tyler (TYL) This Earnings Season?

Tyler Technologies TYL is set to report third-quarter 2022 results on Oct 26.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.87 per share, down approximately 7% from the year-ago quarter. Further, the consensus mark for revenues stands at $466.5 million, calling for a 1.3% increase from the year-ago quarter.

Tyler has surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.5%.

In the last reported quarter, TYL’s non-GAAP earnings of $1.88 per share surpassed the Zacks Consensus Estimate by 5 cents. Moreover, revenues of $468.7 million beat the consensus mark of $456.2 million.

Let’s see how things have shaped up for the upcoming announcement.

Tyler Technologies, Inc. Price and EPS Surprise

Tyler Technologies, Inc. Price and EPS Surprise
Tyler Technologies, Inc. Price and EPS Surprise

Tyler Technologies, Inc. price-eps-surprise | Tyler Technologies, Inc. Quote

Factors to Consider

Tyler’s third-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performance is likely to have benefited from the public sector’s ongoing transition from the on-premise and outdated systems to scalable cloud-based systems.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. As a result, 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.

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.

Also, 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 #4 (Sell) 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, Fortinet FTNT, Twilio TWLO and CDW Corporation CDW have the right combination of elements to post an earnings beat in their upcoming releases.

Fortinet is slated to report third-quarter 2022 results on Nov 2. The company carries a Zacks Rank #2 and has an Earnings ESP of +0.92% at present. Fortinet’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 10.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for quarterly earnings is pegged at 27 cents per share, suggesting a year-over-year improvement of 35%. FTNT’s quarterly revenues are estimated to increase 29.6% year over year to $1.12 billion.

Twilio currently carries a Zacks Rank #2 and has an Earnings ESP of +1.94%. The company is slated to report its third-quarter 2022 results on Nov 3. Twilio’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 64.1%.

The Zacks Consensus Estimate for Twilio’s third-quarter earnings stands at a loss of 39 cents per share. TWLO is estimated to report revenues of $969.2 million, which suggests growth of 30.9% from the year-ago quarter.

CDW carries a Zacks Rank #3 and has an Earnings ESP of +0.31%. The company is scheduled to report third-quarter 2022 results on Nov 2. CDW’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.8%.

The Zacks Consensus Estimate for CDW’s third-quarter earnings is pegged at $2.52 per share, indicating a year-over-year increase of 18.3%. The consensus mark for revenues stands at $6.21 billion, suggesting a year-over-year increase of 17.2%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Fortinet, Inc. (FTNT) : Free Stock Analysis Report
 
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