Imperial Capital Remains Sidelined After NIC (EGOV) Reports 4Q Miss - PT to $19

Imperial Capital maintained an In-Line rating on NIC Inc. (NASDAQ: EGOV), and cut the price target to $19.00 (from $22.00), following the company's 4Q earnings report. EGOV reported quarterly revenue of $71mn, slightly below the Street's estimate of $72mn. EPS of $0.13 was slightly below the Street estimate of $0.14. The company also announced new three-year contract with the State of Nebraska.

Analyst Jeff Kessler commented, "On 2/4/16, EGOV reported quarterly revenue of $71mn, consistent with our estimate
and slightly below Street estimate of $72mn. EPS of $0.13 was slightly below our and Street estimate of $0.14. The company announced that the State of Nebraska signed a new three-year contract with EGOV. The contract includes two one-year renewal options for the state that can be extended out to April 2021. In addition, the State of Hawaii extended its contract for an additional three years, taking the agreement through January 2019. The State of Mississippi also extended its contract for two years, taking the agreement through December 2017. Taking management’s FY16 outlook into consideration, we are slightly lowering our FY16 revenue estimate to $311.9mn from $312.2mn, lowering our EBITDA estimate to $81.1mn from $83.3mn, but maintaining our EPS estimate of $0.67. For more details about our estimates, please see Figures 1, 6, and 7."

For an analyst ratings summary and ratings history on NIC Inc. click here. For more ratings news on NIC Inc. click here.

Shares of NIC Inc. closed at $16.75 yesterday.

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