National Research (NASDAQ:NRC) Posts Quarterly Earnings Results, Meets Estimates

National Research (NASDAQ:NRC) issued its quarterly earnings results on Tuesday. The company reported $0.21 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.21, FiscalAI reports. National Research had a net margin of 4.18% and a return on equity of 164.26%. The company had revenue of $38.40 million during the quarter, compared to the consensus estimate 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 Down 3.1%

Shares of NRC traded down $0.70 on Tuesday, reaching $21.75. The company’s stock had a trading volume of 105,729 shares, compared to its average volume of 111,420. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 13.13. National Research has a twelve month low of $11.43 and a twelve month high of $23.68. The stock has a market capitalization of $494.73 million, a PE ratio of 87.00 and a beta of 0.25. The firm has a fifty day moving average of $21.12 and a 200-day moving average of $19.13.

Wall Street Analyst Weigh In

A number of analysts have weighed in on NRC shares. Zacks Research upgraded National Research to a “hold” rating in a report on Monday, October 5th. Citizens Jmp boosted their price objective on National Research from $23.00 to $26.00 and gave the company a “market outperform” rating in a research note on Wednesday, July 29th. Wall Street Zen lowered National Research from a “buy” rating to a “hold” rating in a research report on Saturday, August 15th. Finally, Weiss Ratings downgraded National Research from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 9th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently 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.