Paysign, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

One of the biggest stories of last week was how Paysign, Inc. (NASDAQ:PAYS) shares plunged 21% in the week since its latest second-quarter results, closing yesterday at US$5.61. Statutory earnings per share fell badly short of expectations, coming in at US$0.02, some 43% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$19m. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Paysign from five analysts is for revenues of US$77.2m in 2025. If met, it would imply a meaningful 13% increase on its revenue over the past 12 months. Statutory earnings per share are expected to fall 12% to US$0.11 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$76.7m and earnings per share (EPS) of US$0.12 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Check out our latest analysis for Paysign

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 8.3% to US$9.10, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. There are some variant perceptions on Paysign, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$8.50 per share. This is a very narrow spread of estimates, implying either that Paysign is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Paysign's growth to accelerate, with the forecast 27% annualised growth to the end of 2025 ranking favourably alongside historical growth of 21% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Paysign to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Paysign. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Paysign going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Paysign that 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.