Paycor (PYCR) Q2 Earnings Report Preview: What To Look For

Anthony Lee /
2023/02/07 5:32 am EST

Online payroll and human resource software provider Paycor (NASDAQ:PYCR) will be reporting results tomorrow after market hours. Here's what to expect.

Last quarter Paycor reported revenues of $118.3 million, up 27.5% year on year, beating analyst revenue expectations by 4.42%.  Despite the stock dropping on the results, it was a strong quarter for the company, with a full year guidance beating analysts' expectations and a decent beat of analyst estimates.

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

This quarter analysts are expecting Paycor's revenue to grow 23.5% year on year to $127.3 million, improving on the 20% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.

Paycor 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 4.12%.

Looking at Paycor's peers in the finance and HR software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Paylocity delivered top-line growth of 39.2% year on year, beating analyst estimates by 5.13% and Bill.com reported revenues up 66.1% year on year, exceeding estimates by 6.99%. Paylocity traded flat on the results, Bill.com was down 19.8%. Read our full analysis of Paylocity's results here and Bill.com's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 20.8% over the last month. Paycor is up 4.95% during the same time, and is heading into the earnings with analyst price target of $33.7, compared to share price of $25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.