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Tyler's (TYL) ERP Suite to Streamline Fairfax City's Operations

Tyler Technologies TYL recently announced that the City of Fairfax, VA, signed an agreement to implement its Munis-powered Enterprise ERP (enterprise resource planning) solutions. Apart from solutions for financial management, purchasing, and human resource and payroll, the ERP suite includes Tyler’s Time & Attendance solution for payroll timekeeping.

The implementation of TYL’s solutions will modernize Fairfax’s ERP system and help it streamline all business operations. Tyler’s ERP suite will replace the city’s current system, which is now unable to meet its growing needs. With the implementation, Fairfax will be able to offer efficient services to the community, provide better business intelligence for decision making and offer more transparency.

Accelerated Cloud Adoption Aiding Contract Wins

It is worth mentioning that Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems.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.

Tyler Technologies, Inc. Price and Consensus

Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. Price and Consensus

Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote

In November, Tyler won a five-year contract from the U.S. Department of State's Diplomatic Security Service for its Case Management Development Platform. The company revealed that the deal is worth $54 million and is the largest-ever award for such a system.

In the same month, it signed an agreement with the Arizona Supreme Court to provide its Enterprise Supervision solution. The integrated justice solution will support Arizona’s 15 Adult Probation Departments, including the Superior Court in Maricopa County.

In October, Kansas signed a two-year contract extension for Tyler’s digital government and payment processing services. The deal can be attributed to the Texas-based company’s acquisition of NIC in April 2021.

The company 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, Tyler acquired Quatred, a systems integrator and solution provider that assists clients by implementing advanced touchless technologies, including barcoding.

The accelerated digital transformation and a sustained focus on enhancing the product portfolio through innovation and acquisitions are driving Tyler’s overall financial performance.

In the third quarter of 2022, the company’s GAAP and non-GAAP revenues increased 2.9% year over year to $473.2 million and outpaced the Zacks Consensus Estimate of $466.5 million. Non-GAAP earnings improved 2.8% to $2.06 per share and beat the consensus mark of $1.86 per share.

Zacks Rank & Stocks to Consider

Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have decreased 42.6% year to date (YTD).

Some better-ranked stocks from the broader technology sector are Celestica CLS, Oracle ORCL and Blackbaud BLKB. Celestica sports a Zacks Rank #1 (Strong Buy) at present, while Oracle and Blackbaud 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 Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 60 days. For 2022, earnings estimates have moved up 9.4% to $1.86 per share in the past 60 days.

CLS' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.8%. Shares of the company have declined 3.2% YTD.

The Zacks Consensus Estimate for Oracle's third-quarter fiscal 2023 earnings has been revised a penny south to $1.24 per share over the past 60 days. For fiscal 2023, earnings estimates have moved a penny lower to $4.96 per share in the past 30 days.

ORCL’s earnings beat the Zacks Consensus Estimate twice in the preceding four quarters while missing the same on two occasions, the average surprise being 3.4%. Shares of the company have declined 9.5% YTD.

The Zacks Consensus Estimate for Blackbaud's fourth-quarter 2022 earnings has been revised southward by 3 cents to 58 cents per share over the past 60 days. For 2022, earnings estimates have moved upward by 4 cents to $2.59 per share in the past 60 days.

Blackbaud's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.9%. Shares of BLKB have slumped 26.9% YTD.

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