Paycor (PYCR) Q1 Earnings Report Preview: What To Look For
Online payroll and human resource software provider Paycor (NASDAQ:PYCR) will be reporting earnings tomorrow after market hours. Here's what to expect.
Last quarter Paycor reported revenues of $140 million, up 26.2% year on year, beating analyst revenue expectations by 2.6%. It was a mixed quarter for the company, with revenue and adjusted operating profit exceeding expectations. On the other hand, its revenue guidance for next year suggests a significant slowdown in demand and its revenue guidance for next quarter also missed Wall Street's estimates. Additionally, next quarter's adjusted operating profit guide was also below expectations.
Is Paycor buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Paycor's revenue to grow 18% year on year to $139.6 million, slowing down from the 27.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 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 4.1%.
Looking at Paycor's peers in the HR software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Ceridian delivered top-line growth of 19.6% year on year, beating analyst estimates by 2.2% and Paylocity reported revenues up 25.4% year on year, exceeding estimates by 0.4%. Ceridian traded down 1.3% on the results, Paylocity was down 5.4%.
Read our full analysis of Ceridian's results here and Paylocity's results here.
Tech stocks have had a rocky start since 2022 and while some of the HR software stocks have fared somewhat better, they have not been spared, with share price declining 4.4% over the last month. Paycor is down 28% during the same time, and is heading into the earnings with analyst price target of $27.6, compared to share price of $17.5.
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The author has no position in any of the stocks mentioned.
