Will Paycom Software (PAYC) Q3 Earnings Post A Surprise?
Zacks Investment Research | Oct 27, 2016 06:31AM ET
A provider of human capital management software as a service, Paycom Software, Inc. (NYSE:PAYC) is set to report third-quarter 2016 results on Nov 1. Last quarter, the company posted a positive earnings surprise of 23.1%. Let's see how things are shaping up for this announcement.
Factors to Consider
Paycom Software reported better-than-expected second-quarter 2016 results, with the top- and bottom line surpassing the Zacks Consensus Estimate. Also, year-over-year comparisons on both counts were favorable.
Revenue growth seems to be steady and was positively impacted by higher recurring revenues and higher traction in cloud-based offerings. Better-than-expected demand for advanced human capital management and payroll software solutions during the reported quarter were the other positives.
We believe that the higher adoption of Paycom Software’s Affordable Care Act (“ACA”) dashboard application that tracks employee count, employee status and health care plan affordability will act as a tailwind for the company. Also, the successful cross-selling of newer products to the existing client base might boost Paycom Software’s revenues.
Nevertheless, competition from companies like Paylocity Holding Corp. (NASDAQ:PCTY) , Intuit Inc (NASDAQ:INTU). and Paychex (NASDAQ:PAYX), Inc. remains a headwind.
PAYCOM SOFTWARE Price and EPS Surprise
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