PAR Technology Corporation (NYSE:PAR) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Shareholders of PAR Technology Corporation (NYSE:PAR) will be pleased this week, given that the stock price is up 16% to US$20.55 following its latest quarterly results. Revenues were a bright spot, with US$137m in revenue arriving 5.6% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.22, some 5.8% below consensus predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, PAR Technology's nine analysts are now forecasting revenues of US$571.8m in 2027. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 82% to US$0.27. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$571.8m and losses of US$0.27 per share in 2027.
View our latest analysis for PAR Technology
As a result there was no major change to the consensus price target of US$24.94, implying that the business is trading roughly in line with expectations despite ongoing losses. 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 PAR Technology at US$33.00 per share, while the most bearish prices it at US$17.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. We would highlight that PAR Technology's revenue growth is expected to slow, with the forecast 8.8% annualised growth rate until the end of 2027 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. Factoring in the forecast slowdown in growth, it seems obvious that PAR Technology is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that PAR Technology's revenue is expected to perform worse 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.
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 estimates - from multiple PAR Technology analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - PAR Technology has 1 warning sign we think you should be aware of.
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