The Priority Technology Holdings, Inc. (NASDAQ:PRTH) Yearly Results Are Out And Analysts Have Published New Forecasts

One of the biggest stories of last week was how Priority Technology Holdings, Inc. (NASDAQ:PRTH) shares plunged 29% in the week since its latest full-year results, closing yesterday at US$7.66. Revenues were in line with expectations, at US$880m, while statutory losses ballooned to US$0.31 per share. 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.

Check out 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$972.2m in 2025. If met, it would imply a solid 11% increase on its revenue over the past 12 months. Priority Technology Holdings is also expected to turn profitable, with statutory earnings of US$0.55 per share. Before this earnings report, the analysts had been forecasting revenues of US$972.7m and earnings per share (EPS) of US$0.63 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at US$14.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Priority Technology Holdings, with the most bullish analyst valuing it at US$16.00 and the most bearish at US$12.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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 Priority Technology Holdings' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Priority Technology Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.3% annually. Even after the forecast slowdown in growth, it seems obvious that Priority Technology Holdings is also expected 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 Priority Technology Holdings. 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$14.00, 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 Priority Technology Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Priority Technology Holdings going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Priority Technology Holdings (1 shouldn't be ignored!) that you need to be mindful 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.