What Happened:
Shares of online payroll and human resource software provider Paycor (NASDAQ:PYCR) fell 6.1% in the morning session after the company reported fourth quarter results and provided revenue guidance for next year, which missed analysts' estimates. The full year (FY2024) revenue guidance points to a notable deceleration in demand, with an implied growth of 17.1% compared to the robust 28.6% in FY2023. Its revenue guidance for next quarter also missed Wall Street's estimates. Additionally, next quarter's adjusted operating profit guidance missed.
On the other hand, Paycor beat analysts' revenue and adjusted operating profit expectations for the quarter. Regardless, this was overshadowed by the unfavorable outlook shared by the company, leading to a negative market response.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Paycor? Access our full analysis report here, it's free.
What is the market telling us:
Paycor's shares are quite volatile and over the last year have had 15 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move was four months ago, when the company dropped 5.04% on the news that William Blair's analyst initiated coverage on the stock with a Market Perform (Hold) rating. The analyst did not provide a price target.
Paycor is down 11.8% since the beginning of the year, and at $21.33 per share it is trading 35.8% below its 52-week high of $33.20 from October 2022. Investors who bought $1,000 worth of Paycor's shares at the IPO in July 2021 would now be looking at an investment worth $818.43.
Do you want to know what moves the stocks you care about? Add them to your StockStory watchlist and every time a stock we cover moves more than 5%, we provide you with a timely explanation straight to your inbox. It's free and will only take you a second.