Uncovering Potential: PAR Technology's Earnings Preview

PAR Technology PAR is set to give its latest quarterly earnings report on Friday, 2024-11-08. Here's what investors need to know before the announcement.

Analysts estimate that PAR Technology will report an earnings per share (EPS) of $-0.10.

Anticipation surrounds PAR Technology's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

Last quarter the company missed EPS by $0.05, which was followed by a 2.94% increase in the share price the next day.

Here's a look at PAR Technology's past performance and the resulting price change:

PAR Technology Share Price Analysis

Shares of PAR Technology were trading at $66.27 as of November 06. Over the last 52-week period, shares are up 90.28%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on PAR Technology

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on PAR Technology.

The consensus rating for PAR Technology is Buy, derived from 6 analyst ratings. An average one-year price target of $64.0 implies a potential 3.43% downside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of OSI Systems, Crane NXT and NAPCO Security Techs, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• OSI Systems received a Buy consensus from analysts, with an average 1-year price target of $175.0, implying a potential 164.07% upside.
• Crane NXT received a Outperform consensus from analysts, with an average 1-year price target of $87.33, implying a potential 31.78% upside.
• Analysts currently favor an Buy trajectory for NAPCO Security Techs, with an average 1-year price target of $50.71, suggesting a potential 23.48% downside.

Peer Metrics Summary

In the peer analysis summary, key metrics for OSI Systems, Crane NXT and NAPCO Security Techs are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

PAR Technology is positioned at the top for Revenue Growth among its peers. It ranks in the middle for Gross Profit. In terms of Return on Equity, PAR Technology is also in the middle.

Delving into PAR Technology's Background

PAR Technology Corp together with its subsidiaries provides management technology solutions including software, hardware, and related services, integral to the point-of-sale infrastructure and task management, information gathering, assimilation, and communication services. It has two segments. The restaurant/ Retail segment provides point-of-sale and management technology solutions such as hardware, software, and integrated technical solutions to the restaurant and retail industries. The government segment provides intelligence, surveillance, and reconnaissance solutions and mission systems support. The company derives the majority of its revenues from the Restaurant/ Retail segment.

PAR Technology's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, PAR Technology showcased positive performance, achieving a revenue growth rate of 12.4% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: PAR Technology's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 69.34%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): PAR Technology's ROE stands out, surpassing industry averages. With an impressive ROE of 9.72%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): PAR Technology's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 5.25%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 0.65, PAR Technology faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for PAR Technology visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.