Paycom (PAYC) To Report Earnings Tomorrow: Here Is What To Expect
Online payroll and human resource software provider Paycom (NYSE:PAYC) will be reporting results tomorrow after market hours. Here's what investors should know.
Last quarter Paycom reported revenues of $401.1 million, up 26.6% year on year, in line with analyst expectations. It was a slower quarter for the company, with a decline in its gross margin and underwhelming revenue guidance for the next quarter.
Is Paycom buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Paycom's revenue to grow 23% year on year to $411.1 million, slowing down from the 30.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.61 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.09%.
Looking at Paycom's peers in the finance and HR software segment, only Paychex has so far reported results, delivering top-line growth of 6.62% year on year, and beating analyst estimates by 0.97%. The stock traded flat on the results.
Read our full analysis of Paychex's earnings results here.
The technology sell-off has been putting pressure on stocks and while some of the finance and HR software stocks have fared somewhat better, they have not been spared, with share price declining 8.25% over the last month. Paycom is down 7.58% during the same time, and is heading into the earnings with analyst price target of $360.4, compared to share price of $240.34.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
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The author has no position in any of the stocks mentioned.
