Online payroll and human resource software provider Paycom (NYSE:PAYC) will be reporting results tomorrow after market hours. Here's what you need to know.
Last quarter Paycom Software reported revenues of $353.5 million, up 29.8% year on year, beating analyst revenue expectations by 3%. It was a strong quarter for the company, with a significant improvement in gross margin and a very optimistic guidance for the next quarter.
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This quarter analysts are expecting Paycom Software's revenue to grow 27.4% year on year to $308.5 million, slowing down from the 33.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.12 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.23%.
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 the whole sector has been hit hard on fears of higher interest rates, with stocks down on average 3.81% over the last month. Paycom Software is up 4.69% during the same time, and is heading into the earnings with analyst price target of $369.1, compared to share price of $316.75.
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The author has no position in any of the stocks mentioned.