NICE Ltd. Just Missed EPS By 5.9%: Here's What Analysts Think Will Happen Next

NICE Ltd. (TLV:NICE) shareholders are probably feeling a little disappointed, since its shares fell 5.2% to ₪553 in the week after its latest quarterly results. It looks like the results were a bit of a negative overall. While revenues of US$700m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.9% to hit US$2.01 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 1 warning sign about NICE. View them for free.

Taking into account the latest results, the consensus forecast from NICE's 17 analysts is for revenues of US$2.92b in 2025. This reflects an okay 5.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 23% to US$9.04. In the lead-up to this report, the analysts had been modelling revenues of US$2.92b and earnings per share (EPS) of US$8.75 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for NICE

There's been no major changes to the consensus price target of ₪751, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NICE's past performance and to peers in the same industry. It's pretty clear that there is an expectation that NICE's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% per year. Factoring in the forecast slowdown in growth, it seems obvious that NICE is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards NICE following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on NICE. Long-term earnings power is much more important than next year's profits. We have forecasts for NICE going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for NICE that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.