- Toast Inc. (NYSE:TOST) is expected to report an EPS of $0.19, a significant turnaround from the previous year’s loss.
- Projected revenue of approximately $1.34 billion, marking a 24.7% year-over-year growth.
- The company’s stock has surged by 51% over the past year, outpacing the industry average.
Toast Inc. (NYSE:TOST), a leading entity in the restaurant technology sector, is preparing to unveil its quarterly earnings on May 8, 2025. The company offers a comprehensive platform that integrates point-of-sale, financial technology, and other services tailored for the foodservice industry. With competitors like Square and Clover, Toast stands out by providing specialized technology solutions for restaurants.
Wall Street analysts have set the bar high, projecting Toast’s earnings per share (EPS) to be $0.19, a notable improvement from the previous year’s loss of $0.05 per share. This forecasted growth underscores the company’s strong performance, as emphasized by Zacks Investment Research. Toast has a track record of surpassing expectations, boasting an average surprise of 197.4% over the last four quarters, which highlights its capability to outshine market predictions.
The company’s revenue is anticipated to hit around $1.34 billion, reflecting a 24.7% increase from the previous year. This surge is attributed to Toast’s growing market presence and the adoption of its data and AI-driven solutions. Significant contributions to this growth come from Subscription services, Financial technology solutions, and Hardware and professional services, all of which have demonstrated robust sales performance.
Despite its lofty valuation, with a trailing twelve months (TTM) price-to-earnings (P/E) ratio of 1069.87, Toast’s stock has experienced a 51% increase over the past year. This growth rate surpasses the Zacks Internet-Software industry’s rise of 23.3%, signaling strong investor confidence. The company’s price-to-sales ratio of 4.16 and enterprise value to sales ratio of 3.99 suggest a moderate valuation based on sales.
Toast boasts a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial stability. Its current ratio of 2.44 showcases strong liquidity, ensuring the company’s capability to meet its short-term obligations. However, the earnings yield of 0.093% is relatively low, which may be a point of consideration for potential investors.
