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What's in Store for Paycom (PAYC) This Earnings Season?
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Paycom Software (PAYC - Free Report) is set to report fourth-quarter fiscal 2020 results on Feb 10.
For the fiscal fourth quarter, management estimates revenues between $212 million and $214 million.
The Zacks Consensus Estimate for revenues is pegged at $213.85 million, indicating an increase of 10.57% year over year. The consensus mark for earnings is 81 cents per share, suggesting a 5.81% fall from the prior-year quarter.
The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.4%.
Let’s see how things have shaped up for the upcoming announcement.
Paycom’s quarterly performance is likely to have benefited from new business wins and the high-margin recurring revenue business. The firm’s employee usage strategy, sales efforts and investments are anticipated to have boosted sales growth during the period in discussion.
In its last earnings call, the company had mentioned its intention to aggressively drive advertising and marketing efforts in order to generate more demo leads, virtual meetings and increased close rates of deals. This is likely to have led to further market share gains for Paycom.
Nonetheless, Paycom’s quarterly performance is likely to have been hurt by pandemic-triggered economic and business disruptions. Notably, some of the company’s businesses are directly related to the number of headcounts at its client offices.
We expect investors to be more focused on the company’s guidance rather than the quarterly results. They would want to hear from management regarding Paycom’s plans to combat the coronavirus crisis and stay afloat during these turbulent times.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Paycom this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Paycom currently has a Zacks Rank of 3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank of 3, currently.
Adobe Inc. (ADBE - Free Report) has an Earnings ESP of +0.36% and currently, a Zacks Rank of 3.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
What's in Store for Paycom (PAYC) This Earnings Season?
Paycom Software (PAYC - Free Report) is set to report fourth-quarter fiscal 2020 results on Feb 10.
For the fiscal fourth quarter, management estimates revenues between $212 million and $214 million.
The Zacks Consensus Estimate for revenues is pegged at $213.85 million, indicating an increase of 10.57% year over year. The consensus mark for earnings is 81 cents per share, suggesting a 5.81% fall from the prior-year quarter.
The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.4%.
Let’s see how things have shaped up for the upcoming announcement.
Paycom Software, Inc. Price and EPS Surprise
Paycom Software, Inc. price-eps-surprise | Paycom Software, Inc. Quote
Key Factors
Paycom’s quarterly performance is likely to have benefited from new business wins and the high-margin recurring revenue business. The firm’s employee usage strategy, sales efforts and investments are anticipated to have boosted sales growth during the period in discussion.
In its last earnings call, the company had mentioned its intention to aggressively drive advertising and marketing efforts in order to generate more demo leads, virtual meetings and increased close rates of deals. This is likely to have led to further market share gains for Paycom.
Nonetheless, Paycom’s quarterly performance is likely to have been hurt by pandemic-triggered economic and business disruptions. Notably, some of the company’s businesses are directly related to the number of headcounts at its client offices.
We expect investors to be more focused on the company’s guidance rather than the quarterly results. They would want to hear from management regarding Paycom’s plans to combat the coronavirus crisis and stay afloat during these turbulent times.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Paycom this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Paycom currently has a Zacks Rank of 3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Vishay Intertechnology, Inc. (VSH - Free Report) has an Earnings ESP of +4.82% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank of 3, currently.
Adobe Inc. (ADBE - Free Report) has an Earnings ESP of +0.36% and currently, a Zacks Rank of 3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>