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On Friday, JMP analysts maintained their Market Outperform rating and $300.00 price target for NICE Systems Ltd (NASDAQ:NICE), following the company’s release of its fourth-quarter 2024 financial results. According to InvestingPro data, the stock is currently trading near its 52-week low, suggesting potential upside opportunity based on the company’s Fair Value estimates. NICE Systems reported non-GAAP earnings per share (EPS) of $3.02, slightly surpassing the consensus estimate of $2.95. However, the non-GAAP operating margin was reported at 31.5%, which was below the anticipated 31.9%. The company maintains strong financial health, with InvestingPro analysis showing a "GREAT" overall financial score of 3.15 out of 5.
The company’s non-GAAP revenue reached $722 million, exceeding the expected $715 million and marking a year-over-year increase of 16%. This growth rate represents an acceleration from the 15% growth observed in the third quarter of 2024. NICE Systems also saw its non-GAAP cloud revenue climb to $534 million, just above the consensus estimate of $532 million, showcasing a consistent 24% year-over-year growth, mirroring the growth rate from the previous quarter. The company’s trailing twelve-month revenue growth stands at 13.52%, demonstrating sustained momentum in its business expansion.
Additionally, NICE Systems demonstrated strong financial health with free cash flow of $225 million, which notably exceeded the consensus estimate of $202 million. This financial performance indicates the company’s ability to generate considerable cash from its operations, which can be critical for future investments and operational stability.
The analysts’ decision to reiterate their rating and price target reflects their assessment of NICE Systems’ financial results and growth trajectory. Despite the slight miss on operating margin expectations, the company’s overall performance, especially in terms of revenue growth and free cash flow, seems to have reinforced the analysts’ positive outlook on the stock.
In other recent news, NICE Systems Ltd reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $3.02 and revenue of $721.6 million, marking a 16% year-over-year increase. However, the company’s guidance for the first quarter and full year 2025 fell short of Wall Street projections, causing some concern among investors. NICE anticipates first-quarter earnings per share between $2.78 and $2.88, below the consensus of $2.90, and revenue guidance of $693-703 million, missing the estimated $725.5 million. For the full year 2025, the company projects earnings per share between $12.13 and $12.33, and revenue of $2.92-2.94 billion, both below analyst forecasts.
In response to these developments, Jefferies and DA Davidson adjusted their price targets for NICE, with Jefferies lowering it to $173 and DA Davidson to $200, while maintaining a Hold and Buy rating, respectively. Both firms cited NICE’s cautious 2025 outlook as a factor in their revised targets. Despite the tempered projections, NICE remains committed to enhancing its offerings through investments in artificial intelligence and platform capabilities. Meanwhile, Weave announced a change in its executive team, as CFO Alan Taylor plans to retire in 2025, with Jason Christiansen set to succeed him. Christiansen, currently Vice President of Finance at Weave, brings experience from his previous roles at NICE and inContact.
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