Paycom Software Earnings: What To Look For From PAYC

Jabin Bastian /
2022/05/02 7:02 am EDT
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Online payroll and human resource software provider Paycom (NYSE:PAYC) will be reporting results tomorrow afternoon. Here's what you need to know.

Last quarter Paycom Software reported revenues of $284.9 million, up 28.9% year on year, beating analyst revenue expectations by 3.31%. It was a solid quarter for the company, with a strong guidance for the next year and a decent beat of analyst estimates.

Is Paycom Software buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Paycom Software's revenue to grow 26% year on year to $343.1 million, improving on the 12.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.75 per share.

Paycom Software 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.08%.

With Paycom Software being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but the technology segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 18.4% over the last month. Paycom Software is down 21.5% during the same time, and is heading into the earnings with analyst price target of $416.4, compared to share price of $281.47.

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.