National Research (NASDAQ:NRC) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

National Research (NASDAQ:NRC) released its earnings results on Tuesday. The company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.18 by $0.03, FiscalAI reports. The business had revenue of $38.40 million for the quarter, compared to analyst estimates of $35.80 million.

Here are the key takeaways from National Research’s conference call:

• Revenue grew 11% to $38 million in Q3, accelerating from 4% growth in the first half, with less than half of the increase coming from the large customer implementation.
• Total recurring contract value rose 9% to $154 million, supported by strong retention, multi-year renewals, and contributions from Experience, Market Insights, and the Governance Institute.
• Adjusted EBITDA margin improved sequentially to 28% despite the HUB conference shifting into Q3, while management expects another margin improvement in Q4 as implementation costs are absorbed and seasonal revenue benefits emerge.
• Free cash flow reached $7 million, and the company returned capital through a $0.16 per-share dividend and repurchased approximately 790,000 shares under its $60 million authorization.
• NRC Health is searching for a new CFO following the departure of Shane Harrison, although management said the finance team is operating smoothly during the transition.

National Research Stock Performance

NRC opened at $21.75 on Wednesday. The company’s fifty day moving average price is $21.12 and its two-hundred day moving average price is $19.15. National Research has a 1-year low of $11.43 and a 1-year high of $23.68.

National Research Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 8th. Shareholders of record on Tuesday, December 29th will be paid a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Tuesday, December 29th.

Analyst Ratings Changes

NRC has been the topic of a number of research analyst reports. Wall Street Zen cut National Research from a “buy” rating to a “hold” rating in a report on Saturday, August 15th. Zacks Research upgraded shares of National Research to a “hold” rating in a report on Monday, October 5th. Citizens Jmp lifted their price target on shares of National Research from $23.00 to $26.00 and gave the company a “market outperform” rating in a research note on Wednesday, July 29th. Finally, Weiss Ratings lowered shares of National Research from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 9th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $26.00.

About National Research

National Research Corporation, formerly traded on the Nasdaq under the symbol NRC, provides research, analytics and performance-improvement services to the health care industry. Through its NRC Health business, the company helps hospitals, health systems and other care organizations understand and improve patient, consumer and employee experiences.

Its offerings have included patient and employee surveys, market research, reputation management, loyalty and engagement programs, benchmarking, and software tools that turn feedback and other data into operational insights.