Nice NICE recently announced that Maxicare, a leading Health Maintenance Organization in the Philippines, has significantly enhanced its contact center operations by fully leveraging NICE Workforce Management (WFM).
The collaboration has empowered agents and improved customer experience (CX) by eliminating silos and streamlining processes across multiple BPO partners.
With data-driven insights and optimized workflows, Maxicare has improved key performance metrics, including average handle time, response time and call abandonment rates.
Strong Product Portfolio Aid NICE’s Customer Base
Nice’s WFM solution has boosted forecast accuracy by 10%, leading to reduced overscheduling and operational costs. Maxicare’s successful implementation of NICE WFM has also contributed to a 90% customer satisfaction rate, with plans to further enhance and advance service quality.
Nice Price and Consensus
Nice price-consensus-chart | Nice Quote
Nice’s diverse portfolio, featuring solutions like Actimize, Evidencentral, CXone, and Inform Elite, has been gaining popularity. The company’s focus on its cloud offerings, particularly its CXone platform, has been a major growth driver.
During the third quarter of 2024, it reported cloud revenues of $500 million, up 24% year over year. The uptick reflects the growing demand for cloud-native solutions, which are being adopted across various industries.
Building on this momentum, Nice recently announced that AUSIEX has successfully implemented the NICE CXone cloud-native contact center platform, enhancing customer engagement and operational capabilities while achieving a 33% increase in customer engagement.
In November, NICE launched CXone Mpower SmartSpeak, an AI-powered solution offering real-time language interpretation for seamless global communication in customer service and sales. Powered by One Meta, SmartSpeak supports almost 100 languages, allowing businesses to efficiently serve international customers without any additional multilingual support.
NICE is Benefiting From Expanding Clientele
The company’s diverse portfolio is also helping it attract new customers. Its partnerships with AT&T T and Microsoft MSFT have been a key catalyst.
In August, NICE expanded its collaboration with AT&T to offer a unified incident capture and data analytics solution for NextGen 9-1-1 centers, showcasing it at APCO 2024.
A deepening partnership with Microsoft is noteworthy. The collaboration has led to the integration of its NTR-X Compliance Recording and Assurance Solution into the Microsoft Azure Marketplace, providing a robust, cloud-ready compliance platform within the NICE Compliancentral suite.
NICE Estimate Revisions Are Positive
Nice’s efforts to enhance its customer experience with robust cloud solutions are expected to drive top-line growth.
For fourth-quarter 2024, the Zacks Consensus Estimate for revenues is pegged at $713.01 million, indicating 14.41% growth year over year.
The consensus mark for earnings is pegged at $2.96 per share, which has increased 4.96% in the past 30 days. The figure calls for a year-over-year increase of 25.42%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
NICE Suffers From Stiff Competition
Despite a strong pipeline of solutions, NICE has been suffering from foreign exchange headwinds in the APAC market. The stiff competition is also expected to hurt the company’s top-line growth.
Nice shares have plunged 8.5% in the year-to-date period against the broader Zacks Computer & Technology sector’s return of 27.6%.
The underperformance can be attributed to strong competition from other industry players like Five9 FIVN, Salesforce and 8X8, who are expanding their portfolio in the CX market.
In June, Five9 announced an enhanced collaboration with Salesforce, integrating AI-powered solutions to enhance customer experiences in contact centers through real-time agent guidance and conversation intelligence.
Conclusion
We point out that Nice stock is not so cheap, as the Value Score of C suggests a stretched valuation at this moment.
Nice currently carries Zacks Rank #3 (Hold), which suggests that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
