What To Expect From Paycom’s (PAYC) Q4 Earnings

Anthony Lee /
2024/02/06 2:01 am EST

Online payroll and human resource software provider Paycom (NYSE:PAYC) will be reporting earnings tomorrow after market hours. Here's what to look for.

Last quarter Paycom reported revenues of $406.3 million, up 21.6% year on year, missing analyst expectations by 1.2%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.

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

This quarter analysts are expecting Paycom's revenue to grow 13.9% year on year to $422.3 million, slowing down from the 30% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.78 per share.

Paycom 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 1.6%.

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 finance and HR software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 3.2% over the last month. Paycom is down 4.9% during the same time, and is heading into the earnings with with analyst price target of $204.2, compared to share price of $194.2.

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The author has no position in any of the stocks mentioned.