Paycor HCM, Inc. (NASDAQ:PYCR) Just Released Its Second-Quarter Earnings: Here's What Analysts Think
The second-quarter results for Paycor HCM, Inc. (NASDAQ:PYCR) were released last week, making it a good time to revisit its performance. Revenues of US$160m beat expectations by a respectable 2.4%, although statutory losses per share increased. Paycor HCM lost US$0.15, which was 30% more than what the analysts had included in their models. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Paycor HCM after the latest results.
See our latest analysis for Paycor HCM
Following the latest results, Paycor HCM's 19 analysts are now forecasting revenues of US$653.8m in 2024. This would be a meaningful 8.1% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 16% from last year to US$0.39. Before this latest report, the consensus had been expecting revenues of US$652.9m and US$0.37 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a moderate increase in its losses per share forecasts.
As a result, there was no major change to the consensus price target of US$26.33, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Paycor HCM, with the most bullish analyst valuing it at US$42.00 and the most bearish at US$22.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Paycor HCM's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.3% per year. So it's pretty clear that, while Paycor HCM's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$26.33, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Paycor HCM analysts - going out to 2026, and you can see them free on our platform here.
You can also see our analysis of Paycor HCM's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
