Technology One Limited (ASX:TNE) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 4.4% to hit AU$286m. Technology One reported statutory earnings per share (EPS) AU$0.19, which was a notable 11% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Technology One’s 17 analysts is for revenues of AU$596.6m in 2025. This reflects a notable 8.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.9% to AU$0.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$582.8m and earnings per share (EPS) of AU$0.42 in 2025. There doesn’t appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.
View our latest analysis for Technology One
The analysts increased their price target 16% to AU$33.26, perhaps signalling that higher revenues are a strong leading indicator for Technology One’s valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. The most optimistic Technology One analyst has a price target of AU$44.00 per share, while the most pessimistic values it at AU$18.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 analysts are definitely expecting Technology One’s growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Technology One is expected to grow at about the same rate as its industry, so it’s not clear that we can draw any conclusions from its growth relative to competitors.
Read More: Technology One Limited Beat Earnings Expectations And Analysts Now Have New
