Benzinga - by Avi Kapoor, Benzinga Staff Writer.
NICE Ltd. (NASDAQ:NICE) reported upbeat earnings for its first quarter and issued second-quarter adjusted revenue guidance with its midpoint below estimates on Thursday.
NICE posted adjusted earnings of $2.58 per share, beating market estimates of $2.45 per share. The company's quarterly sales came in at $659.309 million versus expectations of $655.362 million, according to data from Benzinga Pro.
NICE said it sees second-quarter adjusted revenue of $657 million to $667 million versus estimates of $667.22 million. The company expects adjusted earnings of $2.53 to $2.63 per share, versus expectations of $2.52 per share.
“We are pleased to start the year with positive momentum, evidenced by a robust performance across the board, while continuing to outpace the industry,” said Barak Eilam, CEO, NICE. “Our total revenue growth of 15% was once again driven by excellent execution in the cloud with 27% revenue growth, propelled by demand for our digital and AI offerings. We also delivered another quarter of expanding profitability as demonstrated by a 170 basis point increase in our Non-GAAP operating margin to 30.3%, leading to a 27% year over year increase in non-GAAP EPS, and generated record operating cash flow of $254 million. Our ongoing healthy cash generation coupled with a best-in-class balance sheet provides us with unparalleled growth opportunities.”
The company said its CEO Barak Eilam will step down by the end of 2024.
NICE shares fell 12.9% to close at $198.60 on Thursday.
These analysts made changes to their price targets on NICE after the company reported quarterly results.
- B of A Securities cut the price target on NICE from $300 to $270. B of A Securities analyst Michael Funk maintained a Buy rating.
- JMP Securities slashed NICE price target from $343 to $300. JMP Securities analyst Patrick Walravens maintained a Market Outperform rating.
- Mizuho lowered the price target on NICE from $300 to $280. Mizuho analyst Siti Panigrahi maintained a Buy rating.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.