Asure (ASUR) Q3 Earnings: What To Expect

Online payroll and human resource software provider Asure (NASDAQ:ASUR) will be announcing earnings results tomorrow after the bell. Here’s what investors should know.

Asure missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $28.04 million, down 7.8% year on year. It was a softer quarter for the company, with a miss of analysts’ EBITDA estimates and a decline in its gross margin.

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

This quarter, analysts are expecting Asure’s revenue to grow 6.8% year on year to $31.33 million, slowing from the 33.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 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. Asure has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Asure’s peers in the finance and HR software segment, only Paychex has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 2.5%. The stock traded up 4.9% on the results.

Read our full analysis of Paychex’s earnings results here.

There has been positive sentiment among investors in the finance and HR software segment, with share prices up 7.7% on average over the last month. Asure is up 8.6% during the same time and is heading into earnings with an average analyst price target of $14.33 (compared to the current share price of $9.62).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.