HR software provider Paycom (NYSE: PAYC) will be reporting results this Wednesday after the bell. Here’s what investors should know.
Paycom met analysts’ revenue expectations last quarter, reporting revenues of $493.3 million, up 9.2% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EBITDA estimates but billings in line with analysts’ estimates.
Is Paycom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Paycom’s revenue to grow 10% year on year to $542.9 million, slowing from the 13.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.45 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paycom has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.4% on average.
Looking at Paycom’s peers in the finance and hr software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Paylocity delivered year-on-year revenue growth of 10.4%, beating analysts’ expectations by 1.9%, and BILL reported revenues up 14.4%, topping estimates by 3.7%. Paylocity traded down 7.2% following the results while BILL was up 37.7%.
Read our full analysis of Paylocity’s results here and BILL’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. Unfortunately, finance and hr software stocks have struggled in this environment as share prices are down 17.9% on average over the last month. Paycom is down 18.7% during the same time and is heading into earnings with an average analyst price target of $197.18 (compared to the current share price of $128.74).
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