Financial News
Earnings To Watch: Paycom (PAYC) Reports Q3 Results Tomorrow
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 met analysts’ revenue expectations last quarter, reporting revenues of $437.5 million, up 9.1% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a decline in its gross margin.
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 10.1% year on year to $447.2 million, slowing from the 21.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.61 per share.
The majority of analysts covering the company have 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% on average.
Looking at Paycom’s peers in the finance and HR software segment, only Paychex has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 2.5%. The stock traded up 4.9% on the results.
Read our full analysis of Paychex’s earnings results here.There has been positive sentiment among investors in the finance and HR software segment, with share prices up 3.6% on average over the last month. Paycom’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $184.30 (compared to the current share price of $167).
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