Stock Analysis

Analysts Have Made A Financial Statement On Tyler Technologies, Inc.'s (NYSE:TYL) Yearly Report

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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. It was a credible result overall, with revenues of US$2.0b and statutory earnings per share of US$3.88 both in line with analyst estimates, showing that Tyler Technologies is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Tyler Technologies

NYSE:TYL Earnings and Revenue Growth February 17th 2024

Taking into account the latest results, the current consensus from Tyler Technologies' 19 analysts is for revenues of US$2.12b in 2024. This would reflect a notable 8.6% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 31% to US$5.15. In the lead-up to this report, the analysts had been modelling revenues of US$2.13b and earnings per share (EPS) of US$4.95 in 2024. So the consensus seems to have become somewhat more optimistic on Tyler Technologies' earnings potential following these results.

The consensus price target was unchanged at US$483, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Tyler Technologies at US$526 per share, while the most bearish prices it at US$412. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Tyler Technologies' revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2024 being well below the historical 17% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tyler Technologies' earnings potential next year. 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. 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.

Plus, you should also learn about the 1 warning sign we've spotted with Tyler Technologies .

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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.