Paycom (PAYC) Q1 Earnings: What To Expect

Kayode Omotosho /
2024/04/30 3:07 am EDT

Online payroll and human resource software provider Paycom (NYSE:PAYC) will be reporting earnings today. Here's what to expect.

Paycom beat analysts' revenue expectations by 2.9% last quarter, reporting revenues of $434.6 million, up 17.3% year on year. It was a mixed quarter for the company, with a decent beat of analysts' billings estimates but management forecasting growth to slow.

Is Paycom a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Paycom's revenue to grow 9.9% year on year to $496.2 million, slowing from the 27.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.47 per share.

Paycom Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paycom has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.6% on average.

Looking at Paycom's peers in the finance and HR software segment, only Paychex has reported results so far. It missed analysts' revenue estimates by 1.2%, delivering year-on-year sales growth of 4.2%. The stock was down 1.1% on the results.

Read our full analysis of Paychex's earnings results here.

Inflation fears have put pressure on growth stocks, and while some of the finance and hr software stocks have fared somewhat better, they have not been spared, with share prices down 3.5% on average over the last month. Paycom is down 2.6% during the same time and is heading into earnings with an average analyst price target of $204 (compared to the current share price of $193.19).

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