It's been a good week for SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) shareholders, because the company has just released its latest annual results, and the shares gained 7.1% to US$86.71. SS&C Technologies Holdings reported US$5.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.00 beat expectations, being 9.9% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SS&C Technologies Holdings after the latest results.
See our latest analysis for SS&C Technologies Holdings
Taking into account the latest results, the consensus forecast from SS&C Technologies Holdings' eleven analysts is for revenues of US$6.19b in 2025. This reflects a credible 5.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.0% to US$3.32. Before this earnings report, the analysts had been forecasting revenues of US$6.16b and earnings per share (EPS) of US$3.34 in 2025. 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 consensus price target rose 12% to US$94.71despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of SS&C Technologies Holdings' earnings by assigning a price premium. 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. The most optimistic SS&C Technologies Holdings analyst has a price target of US$105 per share, while the most pessimistic values it at US$75.00. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.2% growth on an annualised basis. That is in line with its 5.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.1% per year. So although SS&C Technologies Holdings is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on SS&C Technologies Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SS&C Technologies Holdings going out to 2027, and you can see them free on our platform here..
Even so, be aware that SS&C Technologies Holdings is showing 1 warning sign in our investment analysis , you should know about...
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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.
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