Paycom Scheduled to Announce Q4 Earnings Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy PAYC?
Source: seekingalpha
- Earnings Announcement Date: Paycom (PAYC) is set to release its Q4 2023 earnings report on February 11th after market close, with consensus EPS estimated at $2.45, reflecting a 5.6% year-over-year increase, and revenue expected at $542.79 million, up 9.9%, indicating stable growth in both revenue and profitability.
- Historical Performance: Over the past two years, Paycom has exceeded EPS and revenue estimates 88% of the time, demonstrating strong capabilities in managing market expectations and delivering results, which enhances investor confidence ahead of the earnings report.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and three downward adjustments, while revenue estimates experienced one upward revision with no downward changes, suggesting a cautiously optimistic market outlook for Paycom's future performance.
- Market Reaction Expectations: Despite being partially undervalued in past performances, analysts are optimistic about Paycom's potential for reacceleration after challenging years, which may attract increased investor interest moving forward.
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Analyst Views on PAYC
Wall Street analysts forecast PAYC stock price to rise
14 Analyst Rating
3 Buy
11 Hold
0 Sell
Hold
Current: 119.760
Low
165.00
Averages
201.82
High
245.00
Current: 119.760
Low
165.00
Averages
201.82
High
245.00
About PAYC
Paycom Software, Inc. is a provider of a comprehensive, cloud-based human capital management (HCM) solution delivered as software-as-a-service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Its solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (HR) management applications. The Company's applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Holding Proportion Change: Following this purchase, Paycom accounts for 2.9% of Reinhart Partners' reportable assets, highlighting its significance in the investment portfolio, even as overall market performance remains weak.
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- Investor Considerations: While Paycom faces challenges, Reinhart's stake increase may suggest confidence in a potential rebound, prompting investors to carefully assess the risks and opportunities in the context of rapid AI development.
See More
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- Value Increase: By quarter-end, the value of Reinhart's stake in Paycom rose by $82.74 million, reflecting both the impact of share purchases and price movements, although overall market performance has been poor.
- Asset Allocation: This acquisition positions Paycom at 2.9% of Reinhart's assets under management, yet it remains outside the top five holdings, highlighting its relative standing within the investment portfolio.
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- Enhanced User Experience: IWant significantly improves the overall workforce experience by streamlining processes and providing clearer access to information, facilitating smoother communication between HR and employees while empowering them with self-service capabilities.
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- Cautious Outlook: Paycom forecasts FY2026 sales between $2.175 billion and $2.195 billion, falling short of market expectations of $2.228 billion, which may impact investor confidence.
- Analyst Target Adjustments: BTIG analyst lowered Paycom's price target from $195 to $140, while Mizuho analyst reduced it from $180 to $120, reflecting a cautious outlook on the company's future performance.
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