Tyler's (TYL) Justice Suite to Modify Lucas County Court System
Tyler Technologies TYL recently grabbed a major contract in Lucas County, Ohio, to upgrade the current case management systems at the Court of Common Pleas General Division and the Clerk of Courts.
Under the contract with Lucas County, Tyler will replace the court’s current case management system with its Enterprise Justice suite, powered by Odyssey. The company’s Enterprise Justice suite will specifically include its Enterprise Case Manager, Financial Management, Content Management, Integration Toolkit and Custom Reporting solutions.
The implementation of these solutions will help the courts improve case management, streamline court processes and manage all supervision processes more efficiently. Moreover, the solutions will improve the availability and uptime of products and enhance security and compliance.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
It is worth mentioning that Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems.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 consistently enhancing its core software applications and expanding complementary product and service portfolios to cater to the changing needs of customers while keeping pace with technological advancements.
TYL has been pursuing strategic takeovers to broaden its product and service offerings, enter new markets related to local governments, attract clients and expand geographically. In May 2022, Tyler acquired Quatred, a systems integrator and solution provider that assists clients by implementing advanced touchless technologies, including barcoding. However, Tyler faces significant integration risks due to frequent acquisitions.
Tyler’s near-term growth prospect is likely to be affected by delays in procurement processes and lengthening sales cycles amid ongoing macroeconomic uncertainties. Also, many customers are likely to face budget pressures in the near term.
Moreover, high investments in R&D initiatives are likely to hurt margins. Intensifying competition from the likes of Oracle, SAP and Workday might keep Tyler’s pricing under pressure and negatively impact the gross margin.
Zacks Rank & Key Picks
Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have plunged 28.5% over the past year.
Some better-ranked stocks from the broader technology sector are Paylocity Holding PCTY, Zscaler ZS and Nutanix NTNX. Paylocity sports a Zacks Rank #1 (Strong Buy) at present, while Zscaler and Nutanix each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Paylocity’s second-quarter fiscal 2023 earnings has remained unchanged at 70 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved up 47 cents to $4.05 per share in the past 90 days.
Paylocity's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 51.2%. Shares of PCTY have risen 6.6% in the trailing 12 months.
The Zacks Consensus Estimate for Zscaler's second-quarter fiscal 2023 earnings has been revised 3 cents upward to 29 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved up by a penny to $1.24 per share in the past 30 days.
ZS’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 27.3%. Shares of the company have declined 45.8% over the past year.
The Zacks Consensus Estimate for Nutanix's second-quarter fiscal 2023 earnings has been revised northward by 2 cents to 11 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved upward by 4 cents to 17 cents per share in the past 60 days.
Nutanix's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 86.1%. Shares of NTNX have risen 11.6% in the trailing 12 months.
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