HR software provider Paycom (NYSE: PAYC) will be announcing earnings results this Wednesday after market close. Here’s what to look for.
Paycom beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $483.6 million, up 10.5% year on year. It was a very 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 for active Edge members.
This quarter, analysts are expecting Paycom’s revenue to grow 9.1% year on year to $492.8 million, slowing from the 11.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.96 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.
Looking at Paycom’s peers in the hr software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Asure Software delivered year-on-year revenue growth of 23.7%, beating analysts’ expectations by 1.6%, and Paychex reported revenues up 16.8%, in line with consensus estimates. Asure Software traded up 8.3% following the results while Paychex was down 3.5%.
Read our full analysis of Asure Software’s results here and Paychex’s results here.
Investors in the hr software segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Paycom is down 7.7% during the same time and is heading into earnings with an average analyst price target of $242.75 (compared to the current share price of $184.85).
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