Analyst Estimates: Here's What Brokers Think Of Priority Technology Holdings, Inc. (NASDAQ:PRTH) After Its Second-Quarter Report

Shareholders of Priority Technology Holdings, Inc. (NASDAQ:PRTH) will be pleased this week, given that the stock price is up 12% to US$5.15 following its latest second-quarter results. The results don't look great, especially considering that statutory losses grew 283% toUS$0.23 per share. Revenues of US$220m did beat expectations by 2.3%, but it looks like a bit of a cold comfort. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Priority Technology Holdings

Taking into account the latest results, the most recent consensus for Priority Technology Holdings from four analysts is for revenues of US$876.0m in 2024. If met, it would imply a reasonable 7.6% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 57% to US$0.28. Before this earnings announcement, the analysts had been modelling 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 sizeable expansion 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. There are some variant perceptions on Priority Technology Holdings, with the most bullish analyst valuing it at US$11.00 and the most bearish at US$5.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We can infer from the latest estimates that forecasts expect a continuation of Priority Technology Holdings'historical trends, as the 16% annualised revenue growth to the end of 2024 is roughly in line with the 19% 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 4.6% per year. So it's pretty clear that Priority Technology Holdings is forecast to grow substantially faster than its 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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..

Plus, you should also learn about the 3 warning signs we've spotted with Priority Technology Holdings (including 1 which is concerning) .

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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.