SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Full-Year Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) shareholders, because the company has just released its latest yearly results, and the shares gained 5.8% to US$63.95. SS&C Technologies Holdings reported US$5.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.39 beat expectations, being 2.8% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for SS&C Technologies Holdings

Taking into account the latest results, the consensus forecast from SS&C Technologies Holdings' twelve analysts is for revenues of US$5.74b in 2024. This reflects a modest 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 13% to US$2.78. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.70b and earnings per share (EPS) of US$2.82 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$69.53. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on SS&C Technologies Holdings, with the most bullish analyst valuing it at US$81.00 and the most bearish at US$54.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that SS&C Technologies Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.4% growth on an annualised basis. This is compared to a historical growth rate of 6.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than SS&C Technologies Holdings.

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 SS&C Technologies Holdings' revenue is expected to 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for SS&C Technologies Holdings going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for SS&C Technologies Holdings that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.