Online payroll and human resource software provider Paycom (NYSE:PAYC) will be reporting results this Wednesday after market close. Here’s what to expect.
Paycom beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $530.5 million, up 6.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Is Paycom a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Paycom’s revenue to grow 7.9% year on year to $472 million, slowing from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.78 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. Paycom has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Paycom’s peers in the finance and HR software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Asure delivered year-on-year revenue growth of 7.4%, missing analysts’ expectations by 3.2%, and Paychex reported revenues up 10.2%, falling short of estimates by 1.1%. Asure traded down 13.6% following the results while Paychex was also down 7.4%.
Read our full analysis of Asure’s results here and Paychex’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the finance and hr software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Paycom is down 1.3% during the same time and is heading into earnings with an average analyst price target of $243.07 (compared to the current share price of $229.32).
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