PAR Technology Corporation (NYSE:PAR) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Last week, you might have seen that PAR Technology Corporation (NYSE:PAR) released its yearly result to the market. The early response was not positive, with shares down 5.5% to US$43.82 in the past week. The statutory results were mixed overall, with revenues of US$416m in line with analyst forecasts, but losses of US$2.53 per share, some 7.7% larger than the analysts were predicting. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for PAR Technology

Taking into account the latest results, the most recent consensus for PAR Technology from ten analysts is for revenues of US$450.6m in 2024. If met, it would imply a notable 8.4% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 12% from last year to US$2.18. Before this earnings announcement, the analysts had been modelling revenues of US$453.6m and losses of US$1.74 per share in 2024. So it's pretty clear the analysts have mixed opinions on PAR Technology even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

As a result, there was no major change to the consensus price target of US$48.29, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. The most optimistic PAR Technology analyst has a price target of US$55.00 per share, while the most pessimistic values it at US$40.00. 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.

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. It's pretty clear that there is an expectation that PAR Technology's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.4% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.3% per year. So it's pretty clear that, while PAR Technology's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for 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. 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. We have estimates - from multiple PAR Technology analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for PAR Technology 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.