Yahoo Finance Here's What Analysts Are Forecasting For Priority Technology Holdings, Inc. (NASDAQ:PRTH) After Its Second-Quarter Results
It's been a pretty great week for Priority Technology Holdings, Inc. (NASDAQ:PRTH) shareholders, with its shares surging 12% to US$5.15 in the week since its latest quarterly results. Revenues of US$220m beat expectations by a respectable 2.3%, although statutory losses per share increased. Priority Technology Holdings lost US$0.23, which was 283% more than what the analysts had included in their models. 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.
View our latest analysis for Priority Technology Holdings
Taking into account the latest results, the current consensus from Priority Technology Holdings' four analysts is for revenues of US$876.0m in 2024. This would reflect a reasonable 7.6% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 57% to US$0.28. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$874.8m and losses of US$0.20 per share in 2024. So it's pretty clear the analysts have mixed opinions on Priority Technology Holdings even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.
The consensus price target held steady at US$8.00, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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 Priority Technology Holdings analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$5.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.6% annually. So although Priority Technology Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$8.00, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Priority Technology Holdings going out to 2025, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Priority Technology Holdings (1 is a bit concerning) you should be aware of.
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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.
