After the latest quarterly results of Priority Technology Holdings, Inc. (NASDAQ:PRTH), investors have witnessed a significant surge of 12% in share price, reaching US$5.15. This performance was in response to the company's revenues of US$220 million, which exceeded expectations by 2.3%. However, the statutory losses per share of US$0.23 were 283% higher than analysts had predicted.
Analysts’ Reactions and Forecasts
Following the earnings report, analysts from Priority Technology Holdings have updated their forecasts. They now predict 2024 revenues to be US$876.0 million, which marks a 7.6% increase from the past 12 months. Interestingly, losses are anticipated to decrease significantly by 57%, to US$0.28 per share. Prior expectations had set 2024 revenues at US$874.8 million, with losses at US$0.20 per share, indicating some mixed reviews by analysts.
Price Target and Market Valuation
Despite the increase in forecast losses, the consensus price target remains steady at US$8.00, suggesting that analysts believe these higher losses will not affect the company’s long-term valuation. Within the analyst community, price targets vary widely, from a high of US$11.00 to a low of US$5.00 per share, reflecting differing opinions on the company's future performance.
Comparison with Industry Performance
When comparing Priority Technology Holdings’ growth with the broader industry, the company is expected to continue its robust growth trend, with a forecasted annual revenue increase of 16% until the end of 2024. This is consistent with its historical growth rate of 19% over the past five years and indicates a faster growth pace than the industry average of 4.6% annually.
The Bottom Line
While the increased loss per share estimates for the upcoming year stand out, it is important to note that revenue growth forecasts remain positive and above industry averages. The steady price target of US$8.00 suggests that analysts are optimistic about the company’s long-term potential. Investors might want to focus on the company’s growth trajectory rather than short-term losses.
