Asure (ASUR) Q4 Earnings Report Preview: What To Look For

Radek Strnad /
2024/02/25 2:01 am EST

Online payroll and human resource software provider Asure (NASDAQ:ASUR) will be reporting earnings tomorrow after market hours. Here's what to look for.

Last quarter Asure reported revenues of $29.33 million, up 33.9% year on year, beating analyst revenue expectations by 11.1%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but underwhelming revenue guidance for the next quarter.

Is Asure buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Asure's revenue to decline 10.1% year on year to $26.32 million, a deceleration on the 38.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.

Asure Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 9.3%.

Looking at Asure's peers in the HR software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Paycor delivered top-line growth of 20.1% year on year, beating analyst estimates by 2.4% and Paycom reported revenues up 17.3% year on year, exceeding estimates by 2.9%. Paycor traded on the results, Paycom was down 4.5%.

Read our full analysis of Paycor's results here and Paycom's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the HR software stocks have fared somewhat better, they have not been spared, with share price declining 2.9% over the last month. Asure is up 9.9% during the same time, and is heading into the earnings with analyst price target of $14.6, compared to share price of $9.95.

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