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Paycor (PYCR) Q4 Earnings: What To Expect


Kayode Omotosho /
2022/08/22 6:33 am EDT
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Online payroll and human resource software provider Paycor (NASDAQ:PYCR) will be reporting earnings tomorrow after market close. Here's what you need to know.

Last quarter Paycor reported revenues of $122.5 million, up 22.7% year on year, beating analyst revenue expectations by 4.21%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter 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 17.5% year on year to $103.4 million, slowing down from the 19.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 since going public on average by 3.26%.

Looking at Paycor's peers in the HR software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Ceridian delivered top-line growth of 20.2% year on year, beating analyst estimates by 2.27% and Asure Software reported revenues up 18.2% year on year, exceeding estimates by 0.31%. Both companies (Ceridian and Asure) traded flat on the results. Read our full analysis of Ceridian's results here and Asure Software's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 5.34% over the last month. Paycor is up 23% during the same time, and is heading into the earnings with analyst price target of $32.4, compared to share price of $30.85.

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.