PAR Technology’s Strong Bookings Drives 4Q Revenue Beat
PAR Technology delivered stronger-than-expected revenues in the fourth quarter. However, the point-of-sale solutions provider to restaurants and retail outlets reported a wider-than-expected earnings loss during the reported quarter.
PAR Technology’s (PAR) revenues grew 10.6% year-over-year to $58.5 million and exceeded consensus estimates of $57.7 million on strong bookings.
The company’s CEO Savneet Singh said, “Q4 was the strongest bookings quarter in Brink history, continuing the acceleration we saw in Q3 and totaling 1,525. The strong pace of bookings were ahead of our internal expectations.” Meanwhile, Restaurant Magic bookings totaled 146 sites in 4Q.
The company installed 885 new Brink sites in 4Q, about 42% higher from the year-ago period. New Restaurant Magic store activations reached 406 sites in 4Q. (See PAR Technology stock analysis on TipRanks)
An adjusted loss of $0.37 per share in 4Q came in worse than analysts’ estimates as well as the year-ago period’s loss of $0.23 per share.
Following the results, BTIG analyst Mark Palmer maintained a Buy rating and a price target of $105 (40.8% upside potential). In a note to investors, the analyst said, “PAR’s backlog reached an all-time high at YE20; as the impact of the COVID-19 pandemic abates and installations of the company’s cloud-based point-of-sale (POS) systems increase, its ARR [annual recurring revenues] should accelerate, in our view.”
Overall, the Street has a Moderate Buy consensus rating on the stock based on 2 Buys and 1 Hold. The average analyst price target of $92.50 implies upside potential of over 24% to current levels. Shares have skyrocketed over 366% over the past year.
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