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Tyler (TYL) and Colorado's SIPA Extend Contract for One Year

Tyler Technologies TYL recently announced that Colorado’s Statewide Internet Portal Authority (SIPA) has signed a one-year contract extension for its digital government and payment processing services. The deal can be attributed to the Texas-based company’s acquisition of NIC in April 2021.

The relationship between Colorado’s SIPA and NIC is 17-year long. The newly signed agreement reflects a further extension of their relationship.

Tyler’s subsidiary, NIC, currently provides more than 1,100 digital government services in the state, including payment services, point of sale systems and appointment management solutions. Working with more than 580 state and local government agencies, NIC has processed more than eight million transactions.

Tyler Technologies, Inc. Price and EPS Surprise

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

Apart from SIPA’s contract extension, TYL also signed a 10-year agreement with the Colorado Department of Regulatory Agencies, Division of Professions and Occupations for implementing its four solutions. These solutions include Socrata insights solution for analytics, ETK Regulatory solution, its mobile inspection solution and NIC Payments, an electronic payment solution.

President of Tyler's NIC Division, Elizabeth Proudfit, said that "The solutions we provide across the state of Colorado create smarter, safer and stronger communities and meet residents' growing demand for access to convenient, easy-to-use and secure digital services."

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 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 the state governments are focusing on transforming their operations digitally.

Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems. It has been advancing its core software applications and expanding complementary product and service portfolios to fulfill the changing needs of customers and respond to technological advancements.

Last month, Oklahoma signed a five-year contract extension for Tyler’s digital government and payment processing services. In November 2021, TYL signed a multi-year contract extension with Utah to offer digital government and payment services.

During the third quarter of 2021, the company added 114 new subscription-based arrangements and converted 46 existing on-premise clients, accounting for approximately $56 million of the total contract value.

Tyler has been pursuing strategic takeovers to broaden its product and service offerings, enter new markets related to local governments, attract clients and expand geographically. Investments and acquisitions are helping it stay ahead of the curve and capitalize on new and exciting prospects.

In the third quarter, the company gained primarily from post-acquisition contributions of NIC. Its non-GAAP revenues grew 61.1% year over year to $460.6 million. It recently completed the acquisitions of VendEngine, a fintech company and Arx, a cloud-based software service provider.

Zacks Rank and Stocks to Consider

Currently, Tyler carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology sector include Apple AAPL, Broadcom AVGO and Jabil JBL, all carrying a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Apple’s first-quarter fiscal 2022 earnings has been revised upward by a penny to $1.89 per share over the past 30 days. For fiscal 2022, earnings estimates have moved upward by five cents to $5.82 per share in the past 30 days.

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 22.3%. AAPL stock rallied 33.6% over the past year.

The Zacks Consensus Estimate for Broadcom’s first-quarter fiscal 2022 earnings has been revised upward by 8.1% to $8.15 per share over the past 30 days. For fiscal 2022, earnings estimates have moved upward by 6.5% to $33.03 per share over the past 30 days.

Broadcom’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 1.4%. Shares of AVGO have rallied 45% in the trailing 12 months.

The Zacks Consensus Estimate for Jabil’s second-quarter fiscal 2022 earnings has been revised upward to $1.47 per share from $1.41 30 days ago. For fiscal 2022, earnings estimates have been revised upward by 25 cents to $6.58 per share in the past 30 days.

Jabil’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 18.1%. Shares of JBL have rallied 55.9% over the past year.


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