Investors in Tyler Technologies, Inc. (NYSE:TYL) had a good week, as its shares rose 5.8% to close at US$642 following the release of its full-year results. Revenues of US$2.1b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$6.05, missing estimates by 2.1%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Tyler Technologies

After the latest results, the 17 analysts covering Tyler Technologies are now predicting revenues of US$2.32b in 2025. If met, this would reflect a solid 8.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 18% to US$7.23. In the lead-up to this report, the analysts had been modelling revenues of US$2.36b and earnings per share (EPS) of US$6.96 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.6% to US$704. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Tyler Technologies analyst has a price target of US$785 per share, while the most pessimistic values it at US$595. 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.

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 Tyler Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Tyler Technologies going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Tyler Technologies Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.