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Paycom Software (PAYC - Free Report) reported first-quarter 2021 results on Tuesday. This online payroll and human resource technology provider’s adjusted earnings of $1.47 per share beat the Zacks Consensus Estimate by 3.52% and rose 10.5% year over year.
Paycom Software, Inc. Price, Consensus and EPS Surprise
The company generated revenues of $272.2 million, which increased 12.3% from the year-earlier period and surpassed the consensus mark of $271 million. This year-over-year increase was mainly driven by new client additions, which offset the negative impact of lower forms, filings and adjustments due to reduced hiring in COVID-impacted industries.
In its earnings conference call, Paycom noted that the 150-bp interest-rate cut in March 2020 that led to an additional weekly recurring revenue loss of $350,000 remained unchanged during the first quarter.
Margins
Adjusted gross profit increased 11% from the year-ago period to $236.9 million. However, adjusted gross margin contracted 110 bps on a year-on-year basis to 87%.
Paycom Software’s adjusted EBITDA increased 12.8% year on year to $133 million. Further, adjusted EBITDA margin advanced 20 bps to 48.9%
Balance Sheet & Cash Flow
Paycom Software exited the quarter with cash and cash equivalents of $215.1 million compared with the $151.7 million recorded in the prior year .
The company’s balance sheet comprises net long-term debt of $30.5 million compared with the previous quarter’s $30.9 million.
Cash from operations was $89.5 million in the quarter.
Guidance
For the second quarter, Paycom Software estimates revenues between $231 million and $233 million.
Management projects adjusted EBITDA of $80-$82 million.
Long-term earnings growth rate for Lam Research, Vishay Intertechnology and LG Display is currently projected at 32.8%, 20.26% and 29.8%, respectively.
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Paycom's (PAYC) Q1 Earnings & Revenues Surpass Estimates
Paycom Software (PAYC - Free Report) reported first-quarter 2021 results on Tuesday. This online payroll and human resource technology provider’s adjusted earnings of $1.47 per share beat the Zacks Consensus Estimate by 3.52% and rose 10.5% year over year.
Paycom Software, Inc. Price, Consensus and EPS Surprise
Paycom Software, Inc. price-consensus-eps-surprise-chart | Paycom Software, Inc. Quote
Revenues
The company generated revenues of $272.2 million, which increased 12.3% from the year-earlier period and surpassed the consensus mark of $271 million. This year-over-year increase was mainly driven by new client additions, which offset the negative impact of lower forms, filings and adjustments due to reduced hiring in COVID-impacted industries.
In its earnings conference call, Paycom noted that the 150-bp interest-rate cut in March 2020 that led to an additional weekly recurring revenue loss of $350,000 remained unchanged during the first quarter.
Margins
Adjusted gross profit increased 11% from the year-ago period to $236.9 million. However, adjusted gross margin contracted 110 bps on a year-on-year basis to 87%.
Paycom Software’s adjusted EBITDA increased 12.8% year on year to $133 million. Further, adjusted EBITDA margin advanced 20 bps to 48.9%
Balance Sheet & Cash Flow
Paycom Software exited the quarter with cash and cash equivalents of $215.1 million compared with the $151.7 million recorded in the prior year .
The company’s balance sheet comprises net long-term debt of $30.5 million compared with the previous quarter’s $30.9 million.
Cash from operations was $89.5 million in the quarter.
Guidance
For the second quarter, Paycom Software estimates revenues between $231 million and $233 million.
Management projects adjusted EBITDA of $80-$82 million.
Zacks Rank & Stocks to Consider
Paycom currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , Vishay Intertechnology, Inc. (VSH - Free Report) and LG Display Co., Ltd. (LPL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Lam Research, Vishay Intertechnology and LG Display is currently projected at 32.8%, 20.26% and 29.8%, respectively.
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A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
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