Why NIC Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of NIC (NASDAQ: EGOV  ) have jumped today by as much as 19% after the company reported earnings.

So what: Revenue in the second quarter added up to $65.9 million, which paved the way for $0.16 per share in profit. Both figures easily beat the Street, which was calling for $60.6 million in sales and a profit of just $0.11 per share.

Now what: The company said its non-DMV services segment performed well, with sales rising 40%. While the company acknowledged a previously disclosed challenge with the Pennsylvania Treasury, NIC continues to grow relationships with other governments. NIC added Wisconsin as its newest state partner in the quarter, while numerous other states renewed contracts.

Interested in more info on NIC? Add it to your watchlist by clicking here.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2576490, ~/Articles/ArticleHandler.aspx, 10/2/2014 7:16:35 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement