Analysts Are Updating Their SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Estimates After Its Full-Year Results
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. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for SS&C Technologies Holdings
After the latest results, the twelve analysts covering SS&C Technologies Holdings are now predicting revenues of US$5.74b in 2024. If met, this would reflect a modest 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 13% to US$2.78. In the lead-up to this report, the analysts had been modelling revenues of US$5.70b and earnings per share (EPS) of US$2.82 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$69.53. 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. Currently, the most bullish analyst values SS&C Technologies Holdings at US$81.00 per share, while the most bearish prices it at US$54.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. 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.