Tyler Technologies, Inc. (NYSE:TYL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Tyler Technologies, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 100% to $0.34 in the quarter versus EPS of $0.17 in the year-earlier quarter.
Revenue: Rose 15.81% to $95.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Tyler Technologies, Inc. reported adjusted EPS income of $0.34 per share. By that measure, the company beat the mean analyst estimate of $0.31. It missed the average revenue estimate of $96.27 million.
Quoting Management: “We achieved double-digit growth across all of our software revenue lines in the first quarter and total revenue reached a new quarterly high,” said John S. Marr Jr., Tyler’s president and chief executive officer. “Revenue growth was again fueled by recurring revenues from subscriptions and maintenance, which together grew more than 19 percent. Software license and royalty revenues, which increased nearly 17 percent from the first quarter of 2012, included $891,000 from royalties on sales of Microsoft Dynamics® AX 2012. Selling, general and administrative expense, and research and development expense both grew at substantially lower rates than revenues, and our non-GAAP operating margin increased 350 basis points over last year’s first quarter to 19.5 percent.”
Key Stats (on next page)…
Revenue increased 0.45% from $95.37 million in the previous quarter. EPS increased 21.43% from $0.28 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.30 to a profit $0.35. For the current year, the average estimate has moved up from a profit of $1.29 to a profit of $1.46 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)