Paycor (PYCR) To Report Earnings Tomorrow: Here Is What To Expect

Max Juang /
2023/08/15 6:57 am EDT

Online payroll and human resource software provider Paycor (NASDAQ:PYCR) will be reporting results tomorrow after market close. Here's what investors should know.

Last quarter Paycor reported revenues of $161.5 million, up 31.7% year on year, beating analyst revenue expectations by 3.45%. It was a solid quarter for the company, with a significant improvement in its gross margin and a decent beat of analysts' revenue 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% year on year to $136.5 million, slowing down from the 26.1% 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 4.07%.

Looking at Paycor's peers in the HR software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Asure Software delivered top-line growth of 49.9% year on year, beating analyst estimates by 19.4%, and Paycom Software reported revenues up 26.6% year on year, exceeding estimates by 0.72%. Asure Software traded flat on the results, and Paycom Software was down 5.6%.

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

Tech stocks have been facing declining investor sentiment since 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.01% over the last month. Paycor is down 11.5% during the same time, and is heading into the earnings with analyst price target of $30.1, compared to share price of $23.1.

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.