Paysign, Inc. (NASDAQ:PAYS) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Paysign, Inc. (NASDAQ:PAYS) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to US$4.87 in the week after its latest second-quarter results. Results overall were respectable, with statutory earnings of US$0.01 per share roughly in line with what the analysts had forecast. Revenues of US$14m came in 2.4% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Paysign

After the latest results, the four analysts covering Paysign are now predicting revenues of US$57.0m in 2024. If met, this would reflect a satisfactory 6.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to crater 59% to US$0.06 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$56.8m and earnings per share (EPS) of US$0.045 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.

The consensus price target was unchanged at US$6.17, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Paysign, with the most bullish analyst valuing it at US$7.00 and the most bearish at US$5.50 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Paysign's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Paysign'shistorical trends, as the 13% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.3% per year. So although Paysign is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Paysign's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$6.17, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Paysign. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Paysign going out to 2025, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Paysign that we have uncovered.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com