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Plano, Texas-based Tyler Technologies, Inc. (TYL) provides integrated software services that empower government entities to operate efficiently and transparently. It connects data and processes across disparate systems which transform how clients gain actionable insights into opportunities and solutions for their communities. With a market cap of $24.4 billion, Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients spread across the U.S. and internationally.
The tech major is expected to announce its fourth-quarter results on Wednesday, Feb. 12. Ahead of the event, analysts expect Tyler to report a non-GAAP profit of $1.83 per share, up 31.7% from $1.39 per share reported in the year-ago quarter. Furthermore, the company has surpassed Wall Street’s bottom-line projections in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 17.5% year-over-year to $1.95, exceeding analysts' estimates by 4.3%.
For the full fiscal 2024, analysts expect Tyler to deliver an adjusted EPS of $7.36, up a significant 26.9% from $5.80 in fiscal 2023. While in fiscal 2025, its earnings are expected to increase 16.6% year-over-year to $8.58 per share.
TYL stock has soared 35.7% over the past 52 weeks, significantly outperforming the S&P 500 Index’s ($SPX) 26.5% surge and the Technology Select Sector SPDR Fund’s (XLK) 22.1% returns during the same time frame.
Tyler Technologies stock prices soared 5.1% in the trading session after the release of its impressive Q3 results on Oct. 23. The company has continued to observe a robust business momentum which has fueled its SaaS and transaction revenues. Driven by the robust 17.6% year-over-year surge in subscription revenues to $347.2 million, its overall total revenues increased 9.8% year-over-year to $543.3 million. Furthermore, Tyler showcased solid expense management which led to a 29.5% year-over-year growth in operating income to $82.8 million.
Meanwhile, its operating cash flows increased by an even more impressive 48.6% year-over-year to $263.7 million. Observing the solid business momentum Tyler gave a solid full-year revenue and earnings growth guidance which bolstered investor confidence.
The consensus opinion on TYL stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 16 analysts covering the stock, 12 recommend “Strong Buy,” one advises “Moderate Buy,” and three suggest a “Hold” rating. Its mean price target of $670.69 indicates a 17.8% upside potential from current price levels.
