Paymentus Holdings, Inc. Just Beat EPS By 40%: Here's What Analysts Think Will Happen Next

Paymentus Holdings, Inc. (NYSE:PAY) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of US$185m, some 5.7% above estimates, and statutory earnings per share (EPS) coming in at US$0.06, 40% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Paymentus Holdings

Taking into account the latest results, the current consensus from Paymentus Holdings' five analysts is for revenues of US$749.9m in 2024. This would reflect a notable 15% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$0.23, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$737.5m and earnings per share (EPS) of US$0.22 in 2024. So the consensus seems to have become somewhat more optimistic on Paymentus Holdings' earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.1% to US$20.75. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Paymentus Holdings, with the most bullish analyst valuing it at US$23.00 and the most bearish at US$16.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Paymentus Holdings' past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 21% growth on an annualised basis. That is in line with its 23% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.6% annually. So it's pretty clear that Paymentus Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Paymentus Holdings' earnings potential next year. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Paymentus Holdings going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Paymentus Holdings you should know about.

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

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.