Online payroll and human resource software provider Paycom (NYSE:PAYC) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Paycom beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $493.8 million, up 13.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
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 5.1% year on year to $525.6 million, slowing from the 10.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.56 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 three times over the last two years.
Looking at Paycom’s peers in the hr software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paylocity delivered year-on-year revenue growth of 13.3%, beating analysts’ expectations by 2.9%, and Paychex reported revenues up 4.8%, in line with consensus estimates. Paylocity traded down 3.6% following the results while Paychex was up 5.4%.
Read our full analysis of Paylocity’s results here and Paychex’s results here.
There has been positive sentiment among investors in the hr software segment, with share prices up 15% on average over the last month. Paycom is up 11.9% during the same time and is heading into earnings with an average analyst price target of $221.94 (compared to the current share price of $220).
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