Online payroll and human resource software provider Paycom (NYSE:PAYC) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
Paycom beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $451.9 million, up 11.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Is Paycom a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Paycom’s revenue to grow 10.7% year on year to $481.2 million, slowing from the 17.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.97 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paycom has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Paycom’s peers in the HR software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Paycor delivered year-on-year revenue growth of 13.1%, beating analysts’ expectations by 1.9%, and Paylocity reported revenues up 15.5%, topping estimates by 2.7%. Paycor’s stock price was unchanged after the results, while Paylocity was down 2.8%.
Read our full analysis of Paycor’s results here and Paylocity’s results here.
There has been positive sentiment among investors in the HR software segment, with share prices up 11.4% on average over the last month. Paycom is up 2% during the same time and is heading into earnings with an average analyst price target of $217.68 (compared to the current share price of $204.76).
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