Benzinga | Feb 9, 2021 10:24AM EST

Earnings Preview: Tyler Technologies

Tyler Technologies (NYSE:TYL) will be releasing its next round of earnings this Wednesday, February 10. For all of the relevant information, here is your guide for Wednesday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Tyler Technologies earnings will be near $1.42 per share on sales of $291.48 million, according to analysts. In the same quarter last year, Tyler Technologies reported earnings per share of $1.43 on sales of $287.43 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 0.7% decline in the company's earnings. Sales would be up 1.41% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.33 1.20 1.25 1.43EPS Actual 1.50 1.38 1.25 1.43Revenue Estimate 283.96 M 278.59 M 279.98 M 290.98 MRevenue Actual 285.94 M 271.33 M 276.78 M 287.43 M

Stock Performance

Over the last 52-week period, shares are up 26.74%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Tyler Technologies is scheduled to hold the call at 10:00:00 ET and can be accessed here.