NICE Systems Earnings: Here’s Why Shares are Down Now

NICE Systems Ltd. (NASDAQ:NICE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.9%.

NICE Systems Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.02% to $0.61 in the quarter versus EPS of $0.57 in the year-earlier quarter.

Revenue: Rose 6.03% to $224.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NICE Systems Ltd. reported adjusted EPS income of $0.61 per share. By that measure, the company missed the mean analyst estimate of $0.62. It missed the average revenue estimate of $226.93 million.

Quoting Management: “We reported solid results for the second quarter, which was marked by strong new bookings growth in our analytic-based advanced applications. As a result, we believe we are well positioned for a strong second half of the year,” said Zeevi Bregman, President and CEO of NICE Systems. “The bookings growth of our advanced application is the result of the increasing demand from our customers to operationalize Big Data to help them ensure compliance, enhance operational efficiency, increase revenues, improve the customer experience and safeguard people and assets. We continue to focus on innovation to further expand and enhance our Big Data platform and analytics and our portfolio of advanced applications so that we can continue to deliver great value to our customers. The acquisition of Causata announced earlier today further solidifies our strategy.”

Key Stats (on next page)…

Revenue increased 0.25% from $224.33 million in the previous quarter. EPS were the same at $0.61 as the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.66 and has not changed. For the current year, the average estimate is a profit of $2.61, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)