Paycor (PYCR) Reports Earnings Tomorrow. What To Expect

Kayode Omotosho /
2023/05/09 4:31 am EDT
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Online payroll and human resource software provider Paycor (NASDAQ:PYCR) will be reporting results tomorrow after market hours. Here's what investors should know.

Last quarter Paycor reported revenues of $132.9 million, up 28.9% year on year, beating analyst revenue expectations by 4.34%. It was a very strong quarter for the company, with very optimistic guidance for the next quarter and a meaningful improvement in gross margin.

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 27.3% year on year to $156.1 million, improving on the 22.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 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 4.16%.

Looking at Paycor's peers in the finance and HR software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Paychex delivered top-line growth of 8.23% year on year, beating analyst estimates by 2.39% and Paycom Software reported revenues up 27.8% year on year, exceeding estimates by 1.72%. Paychex traded up 5.56% on the results, Paycom Software was flat on the results. Read our full analysis of Paychex's results here and Paycom Software's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 4.81% over the last month. Paycor is down 4.28% during the same time, and is heading into the earnings with analyst price target of $33.3, compared to share price of $23.5.

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.