PAR Technology Corporation (NYSE:PAR) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's shaping up to be a tough period for PAR Technology Corporation (NYSE:PAR), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. PAR Technology missed analyst estimates, with revenues of US$105m and a statutory loss per share (eps) of US$0.62 falling 4.5% and 7.1% below expectations, respectively. 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 PAR Technology

Following the latest results, PAR Technology's nine analysts are now forecasting revenues of US$472.7m in 2024. This would be a solid 12% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 17% from last year to US$1.75. Before this earnings announcement, the analysts had been modelling revenues of US$487.5m and losses of US$1.64 per share in 2024. So it's pretty clear consensus is more negative on PAR Technology after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a pronounced increase to per-share loss expectations.

There was no major change to the consensus price target of US$51.86, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. 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$65.00 per share, while the most pessimistic values it at US$45.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await PAR Technology shareholders.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 20% 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 6.2% per year. So it's pretty clear that PAR Technology is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at PAR Technology. They also downgraded PAR Technology's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$51.86, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for PAR Technology going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for PAR Technology that you should be aware 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.