UPDATE: Barrington Research Downgrades NIC Following Q2/13 EPS Report

UPDATE: Barrington Research Downgrades NIC Following Q2/13 EPS Report

In a report published Tuesday, Barrington Research analyst Gary Prestopino downgraded NIC (NASDAQ: EGOV) from Outperform to Market Perform.

In the report, Barrington Research noted, “Q2/13 EPS totaled $ 0.16 on revenue of $ 65.9 million. Our estimates included revenue of $ 57 million and EPS of $ 0.09 with consensus estimates that included revenue of $ 60.7 million and EPS of $ 0.11 per share. Q2/13 portal revenue increased 27% to $ 62.1 million. On a same-state basis, portal revenues were up 19%. Wisconsin signed a new five year agreement for web portal services becoming the 30th state to align itself with NIC’s outsourced self-funded web portal management service. During Q2/13, the states of New Jersey and New Mexico signed one-year contract renewals through June of 2014, Idaho signed a two-year extension through June of 2015 and Vermont signed a three-year contract due to EGOV’s win of the state’s re-bid RFP. RFPs in the market include the states of Connecticut, Washington and Louisiana. Given strong Q2/13 results, management believes it is on pace to meet or exceed the high end of guidance that included total revenues of $ 232.0-238.5 million, with portal revenues ranging from $ 220.0-226.0 million, software & services revenues ranging from $ 12.0-12.5 million and EPS ranging from $ 0.42-0.46.”

NIC closed on Monday at $ 23.81.


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