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There's been a major selloff in Priority Technology Holdings, Inc. (NASDAQ:PRTH) shares in the week since it released its annual report, with the stock down 29% to US$7.66. Revenues were in line with expectations, at US$880m, while statutory losses ballooned to US$0.31 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Priority Technology Holdings after the latest results.
See our latest analysis for Priority Technology Holdings
After the latest results, the four analysts covering Priority Technology Holdings are now predicting revenues of US$972.2m in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 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. 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. Currently, the most bullish analyst values Priority Technology Holdings at US$16.00 per share, while the most bearish prices it at US$12.00. This is a very narrow spread of estimates, implying either that Priority Technology Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. 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. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.3% per year. Even after the forecast slowdown in growth, it seems obvious that Priority Technology Holdings is also expected to grow faster than the wider industry.