Online payroll and human resource software provider Paycor (NASDAQ:PYCR) will be reporting results tomorrow after market close. Here's what to look for.
Paycor beat analysts' revenue expectations by 2.4% last quarter, reporting revenues of $159.5 million, up 20.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts' billings estimates.
Is Paycor a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Paycor's revenue to grow 15.4% year on year to $186.4 million, slowing from the 31.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paycor has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.9% on average.
Looking at Paycor's peers in the HR software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paylocity (NASDAQ:PCTY) delivered year-on-year revenue growth of 18.1%, beating analysts' expectations by 1%, and Dayforce reported revenues up 16.4%, topping estimates by 1.3%. Paylocity traded up 12.2% following the results while Dayforce was down 6%.
Read the full analysis of Paylocity's and Dayforce's results on StockStory.
Investors in the HR software segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. Paycor is down 3% during the same time and is heading into earnings with an average analyst price target of $25.8 (compared to the current share price of $17.84).
