Tyler Technologies, Inc. (NYSE:TYL) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Tyler Technologies reported in line with analyst predictions, delivering revenues of US$2.0b and statutory earnings per share of US$3.88, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Tyler Technologies' 19 analysts are now forecasting revenues of US$2.12b in 2024. This would be a meaningful 8.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 31% to US$5.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.13b and earnings per share (EPS) of US$5.23 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$486, showing that the business is executing well and in line with expectations. 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$526 and the most bearish at US$434 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tyler Technologies' past performance and to peers in the same industry. We would highlight that Tyler Technologies' revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that Tyler Technologies is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Tyler Technologies' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$486, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Tyler Technologies going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Tyler Technologies that you should be aware of.
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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.