HR software provider Paycom (NYSE:PAYC) will be reporting results this Wednesday after market close. Here’s what investors should know.
Paycom beat analysts’ revenue expectations last quarter, reporting revenues of $571.8 million, up 7.8% year on year. It was a slower quarter for the company, with full-year revenue guidance meeting analysts’ expectations and a slight miss of analysts’ billings estimates.
Is Paycom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Paycom’s revenue to grow 6.1% year on year, slowing from the 10.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Paycom has a history of exceeding Wall Street’s expectations.
Looking at Paycom’s peers in the finance and hr software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Paychex delivered year-on-year revenue growth of 12.5%, meeting analysts’ expectations, and Asure Software reported revenues up 23.2%, in line with consensus estimates. Asure Software traded down 5% following the results.
Read our full analysis of Paychex’s results here and Asure Software’s results here.
There has been positive sentiment among investors in the finance and hr software segment, with share prices up 6.5% on average over the last month. Paycom is up 20.6% during the same time and is heading into earnings with an average analyst price target of $152.25 (compared to the current share price of $168.74).
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