Shares of Nice Ltd. (NICE) surged 5.9% in premarket trading on Thursday, reaching a two-month high. The Israel-based business software company exceeded expectations with its third-quarter earnings and raised its full-year outlook, driven by robust growth in cloud revenue.
Earnings Growth and Positive Outlook
In the year-ago period, net income increased from $71.2 million ($1.07 per share) to $92.4 million ($1.39 per share). Adjusted earnings per share stood at $2.27, outperforming the FactSet consensus of $2.15.
Record Revenue and Impressive Cloud Performance
Notably, Nice Ltd. achieved record revenue of $601.3 million, representing an 8.4% growth. This surpassed the FactSet consensus of $595.0 million. The company experienced a significant 22% increase in cloud revenue, which totaled $403.3 million. However, services revenue fell slightly by 3.0% to $160.2 million.
Enhanced Guidance and Share Repurchase Program
In light of its outstanding performance, Nice Ltd. adjusted its guidance range for adjusted EPS. The company's new guidance now falls between $8.58 and $8.78, compared to the previous range of $8.40 to $8.60.
Additionally, Nice Ltd. unveiled an impressive share repurchase program worth $300 million, representing 2.6% of the company's market capitalization of $11.34 billion at Wednesday's closing.
While Nice Ltd.'s stock had experienced a decline of 15.3% over the past three months, the S&P 500 index had grown by 2.2% during the same period.
Nice Ltd. has once again showcased its financial prowess with Q3 earnings, surpassing expectations and continuing its upward trajectory.
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