Earlier this year, when it released its fourth quarter 2024 finances, Technology Company Nice (Tase: Nice; Nasdaq: Nice) provided annual guidance that disappointed investors and caused its stock to fall sharply. Now, Nice has left its annual revenue guidance unchanged, but has raised net profit guidance.
Nice has been offering customer relationship management and risk management solutions since the beginning of this year, with Scott Russell (who has replaced Barack Elilam, who resigned as CEO after 10 years). The company expects non-GAAP earnings per share for the year between $12.28-$12.48. Revenue guidance remains between $2918 and $2.93 billion. The second quarter guidance is close to analyst estimates, with revenues of $790-709 million (growth of 7%) and earnings per share between $2.93-3.03.
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In the first quarter, Nice beat the consensus analyst estimate. Revenues rose 6.2% to $700 million. GAAP net income rose 21.5% to $129 million, while non-GAAP net income rose 7.9% to $185 million ($2.87 per share).
“We are pleased to report another strong quarter. Cloud revenues rose 12% in the first quarter compared to the same period last year, resulting in continued profitability, including further expansion in operating margins and double-digit increases in earnings per share,” Russell said. “We brought record quarter cash flow in the first quarter, with cash from our operations rising by $225 million year-on-year. Our industry-leading financial profile continues to distinguish ourselves from our competitors and give us excellent financial flexibility to invest strategically to drive long-term growth,” he added, “Our AI and self-service revenues increased 39% year-on-year.”
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At the end of the second quarter, Nice was in debt of $1.6 billion in cash and $459 million in debt. The company has announced a $500 million share buyback program. Nice’s stock price has been flat in the previous year, falling 25.7% over the past 12 months. For a variety of reasons, they fear the departure and competition of Elilam and the impact of AI. Our market capitalization at NASDAQ and TEL AVIV is $10.7 billion. At its peak in 2021, its market capitalization was $20 billion.
According to The Wall Street Journal, 19 analysts cover NICE, most of which give the company a positive review. 14 has a “purchase”/”outperform” rating, 5 has a neutral and none recommends “selling”. Their price target range is between $153 and $300 (the stock price exceeded $300 in 2021), with an average of $202, accounting for a 19% premium over Nasdaq’s current price.
Published by Globes, Israel Business News – En.globes.co.il – May 15, 2025.
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