Yahoo Finance Tyler Technologies, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Shareholders of Tyler Technologies, Inc. (NYSE:TYL) will be pleased this week, given that the stock price is up 14% to US$461 following its latest quarterly results. Revenues were US$512m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.26 were also better than expected, beating analyst predictions by 14%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Tyler Technologies
Following the latest results, Tyler Technologies' 19 analysts are now forecasting revenues of US$2.13b in 2024. This would be a modest 6.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 21% to US$5.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.12b and earnings per share (EPS) of US$5.16 in 2024. So the consensus seems to have become somewhat more optimistic on Tyler Technologies' earnings potential following these results.
There's been no major changes to the consensus price target of US$494, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Tyler Technologies, with the most bullish analyst valuing it at US$529 and the most bearish at US$444 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Tyler Technologies' revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tyler Technologies.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Tyler Technologies following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Tyler Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Tyler Technologies going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Tyler Technologies that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
