Online payroll and human resource software provider Paycom (NYSE:PAYC) will be reporting results tomorrow afternoon. Here's what investors should know.
Last quarter Paycom Software reported revenues of $316.9 million, up 30.8% year on year, beating analyst revenue expectations by 2.7%. It was a decent quarter for the company, with very optimistic guidance for the next quarter but a decline in gross margin.
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 28.1% year on year to $328.2 million, Adjusted earnings are expected to come in at $1.18 per share.
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 2.77%.
With Paycom 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 there has been positive sentiment among investors in the segment, with the stocks up on average 1.96 % over the last month. Paycom Software is up 1.47% during the same time, and is heading into the earnings with analyst price target of $393.10, compared to share price of $341.62.
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The author has no position in any of the stocks mentioned.