Good raises EPS steerage however inventory slides
Earlier this 12 months, when it launched its fourth quarter 2024 financials, expertise firm Good (TASE: NICE; Nasdaq: NICE) supplied annual steerage that disillusioned traders, and its share value fell sharply. Now, Good has left its annual income steerage unchanged, however raised its steerage for web revenue.
Good, which for the reason that starting of this 12 months has been headed by Scott Russell (who changed Barak Eilam, who stepped down after a decade as CEO), gives buyer relations administration and threat administration options. The corporate expects non-GAAP earnings per share for the 12 months of $12.28-12.48, which compares with earlier steerage of $12.13-12.33. The income steerage stays at $2.918-2.938 billion. For the second quarter, the steerage is near analysts’ estimates, at $709-719 million income (7% development) and earnings per share of $2.93-3.03.
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Within the first quarter, Good beat the consensus analysts’ estimate. Income grew by 6.2% to $700 million. GAAP-based web revenue grew by 21.5% to $129 million, and non-GAAP web revenue grew by 7.9% to $185 million, or $2.87 per share.
“We’re happy to report one other sturdy quarter. Cloud income grew 12% within the first quarter in comparison with the identical interval final 12 months, powering continued profitability, together with an extra enlargement in working margin and a double-digit enhance in earnings per share,” Russell mentioned. “We additionally delivered document quarterly money movement within the first quarter, with money from operations rising to $285 million-a 12% year-over-year enhance. Our industry-leading monetary profile continues to distinguish us from rivals, giving us glorious monetary flexibility to speculate strategically to speed up our long-term development.” He added that “our AI and self-service income elevated 39% 12 months over 12 months.”
Most analysts constructive on the inventory
On the finish of the second quarter, Good had $1.6 billion money, versus debt of $459 million. The corporate has introduced a share buyback program amounting to $500 million. Good’s share value is flat for the 12 months up to now, and has fallen 25.7% previously twelve months, for numerous causes, amongst them Eilam’s departure, and fears of competitors and the influence of AI. The corporate’s market cap on Nasdaq and in Tel Aviv is $10.7 billion. On the peak, in 2021, it had a market cap of $20 billion.
In accordance with “The Wall Road Journal”, nineteen analysts cowl Good, and most of them give the corporate a constructive ranking. Fourteen have “Purchase”/”Outperform” rankings, 5 are impartial, and none recommends “Promote.” Their value targets vary from $153 to $300 (in 2021, the share value went above $300), the typical being $202, representing a 19% premium over the present value on Nasdaq.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on Might 15, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
