Priority Technology reported better-than-expected 4Q revenue and earnings. Shares of the payment software and solutions provider were up about 3.3% in Tuesday’s post-market trading session.
Priority Technology’s (PRTH) revenue increased 8.1% year-over-year to $106.1 million, from $98.2 million in the comparable year-ago period, and beat analysts’ estimates by $0.48 million.
The company’s diluted loss per share was $0.01 in 4Q, compared to a diluted loss per share of $0.11 in the year-ago period.
The company’s Chairman and CEO Tom Priore said, “We have executed on our plan to build out our Payment Infrastructure as a Service (PIaaS) solutions while continuing to grow our consumer, commercial and integrated payments divisions.” (See Priority Technology stock analysis on TipRanks)
Priore continued, “We enter 2021 in growth mode with strong activity and a solid pipeline. We expect that the strength of our core acquiring business and complimentary high growth, countercyclical payment assets will drive strong financial performance in 2021.”
On March 8, Priority Technology announced the acquisition of Finxera Holdings, which operates a Banking as a Service (BaaS) platform. The transaction is expected to close in 3Q and Finxera will become a wholly owned subsidiary of Priority.
Yesterday, Roth Capital analyst Andrew Scutt raised the stock’s price target to $13 (74.3% upside potential) from $8 and reiterated a Buy rating.
Commenting on the Finxera acquisition, Scutt noted, “Finxera’s banking platform, simplifies capital management and payment needs of prospective customers, and keeps incremental capital within priority’s ecosystem.”
Priority Technology scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock may outperform the broader market. Shares have risen 254% over the past year.
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