Paycor (PYCR) Q3 Earnings Report Preview: What To Look For

Online payroll and human resource software provider Paycor (NASDAQ:PYCR) will be reporting results tomorrow after the bell. Here’s what to expect.

Paycor beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $164.8 million, up 17.7% year on year. It was a slower quarter for the company, with management forecasting growth to slow and a decline in its gross margin.

Is Paycor a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Paycor’s revenue to grow 12.9% year on year to $162.1 million, slowing from the 21.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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 2.8% on average.

Looking at Paycor’s peers in the HR software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Paylocity delivered year-on-year revenue growth of 14.3%, beating analysts’ expectations by 1.9%, and Paycom reported revenues up 11.2%, topping estimates by 1.1%. Paylocity’s stock price was unchanged after the results, and Paycom’s price followed a similar reaction.

Read our full analysis of Paylocity’s results here and Paycom’s results here.

There has been positive sentiment among investors in the HR software segment, with share prices up 5.8% on average over the last month. Paycor is up 16.4% during the same time and is heading into earnings with an average analyst price target of $18.35 (compared to the current share price of $15.75).

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