HR software provider Paycom (NYSE: PAYC) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
Paycom beat analysts’ revenue expectations last quarter, reporting revenues of $531.2 million, up 9.8% year on year. It was a very strong quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations and a solid beat 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 8.6% year on year, in line with the 9.2% 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 Q3 results, giving us a hint as to what we can expect. Asure Software delivered year-on-year revenue growth of 10.4%, beating analysts’ expectations by 2.4%, and Paychex reported revenues up 5.9%, in line with consensus estimates. Asure Software traded up 29.5% following the results while Paychex was down 11.3%.
Read our full analysis of Asure Software’s results here and Paychex’s results here.
There has been positive sentiment among investors in the finance and hr software segment, with share prices up 4.2% on average over the last month. Paycom is up 18.9% during the same time and is heading into earnings with an average analyst price target of $252.29 (compared to the current share price of $268.45).
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