Yahoo Finance Paymentus Holdings, Inc. Reported A Surprise Loss, And Analysts Have Updated Their Forecasts
Shareholders might have noticed that Paymentus Holdings, Inc. (NYSE:PAY) filed its quarterly result this time last week. The early response was not positive, with shares down 9.9% to US$13.11 in the past week. Things were not great overall, with a surprise (statutory) loss of US$0.02 per share on revenues of US$120m, even though the analysts had been expecting a profit. 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 Paymentus Holdings after the latest results.
Check out our latest analysis for Paymentus Holdings
After the latest results, the eight analysts covering Paymentus Holdings are now predicting revenues of US$489.2m in 2022. If met, this would reflect a solid 9.6% improvement in sales compared to the last 12 months. The company is forecast to report a statutory loss of US$0.0015 in 2022, a sharp decline from a profit over the last year. Before this earnings report, the analysts had been forecasting revenues of US$495.3m and earnings per share (EPS) of US$0.059 in 2022. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 5.9% to US$19.67, with the analysts signalling that growing losses would be a definite concern. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Paymentus Holdings at US$25.00 per share, while the most bearish prices it at US$16.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 Paymentus Holdings' revenue growth is expected to slow, with the forecast 20% annualised growth rate until the end of 2022 being well below the historical 29% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. Even after the forecast slowdown in growth, it seems obvious that Paymentus Holdings is also expected to grow faster than the wider industry.
The Bottom Line
The biggest low-light for us was that the forecasts for Paymentus Holdings dropped from profits to a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 2024, and you can see them free on our platform here.
You still need to take note of risks, for example - Paymentus Holdings has 3 warning signs we think 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.
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