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Paycom (PAYC) Set to Report Q4 Earnings: What's in Store?
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Paycom Software (PAYC - Free Report) is slated to report fourth-quarter 2021 results on Feb 8.
For the fourth quarter, management estimates revenues between $274.5 million and $276.5 million.
The Zacks Consensus Estimate for quarterly revenues is pegged at $275.8 million, indicating an increase of 24.8% year over year. The consensus mark for earnings is $1.08 per share, suggesting a 28.6% rise from the prior-year quarter.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.3%.
Let’s see how things have shaped up before the upcoming announcement.
Paycom stock has underperformed the Zacks Computer and Technology Sector over the past year. PAYC stock plunged 24.1% in the last 12 months while the sector increased 2.3% over the same time frame.
One-Year price Performance
Image Source: Zacks Investment Research
Factors to Note Ahead of Q4 Results
Paycom’s fourth-quarter performance is likely to have benefited from new business wins and the high-margin recurring revenue business. The company’s employee usage strategy, sales efforts and investments are anticipated to have boosted sales growth during the period in discussion.
The cloud-based human capital management solution provider had earlier mentioned its intention to aggressively drive advertising and marketing efforts 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.
However, Paycom’s quarterly performance is expected to have been hurt by pandemic-triggered economic and business disruptions. Some of the company’s businesses are directly related to the number of headcounts at its client offices.
Moreover, form filing might have been negatively impacted by the reduced workforce in industries hit hardest by the pandemic, coupled with a lower turnover in those industries.
What Our Model Says
Our proven model does not predict an earnings beat for PAYC 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. However, that’s not the case here.
Paycom currently carries a Zacks Rank of #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Analog Devices (ADI - Free Report) , CDW Corporation (CDW - Free Report) and Keysight Technologies (KEYS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Analog Devices carries a Zacks Rank #2 and has an Earnings ESP of +0.25%. The company is scheduled to report first-quarter fiscal 2022 results on Feb 16. Analog Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ADI’s first-quarter earnings is pegged at $1.79 per share, indicating year-over-year growth of 24.3%. The consensus mark for revenues stands at $2.61 billion, suggesting a year-over-year increase of 67.3%.
CDW Corporation is slated to report fourth-quarter 2021 results on Feb 9. The company carries a Zacks Rank #2 and has an Earnings ESP of +2.00% at present. CDW Corporation’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 12.2%.
The Zacks Consensus Estimate for CDW’s quarterly earnings is pegged at $1.90 per share, suggesting a year-over-year improvement of 4.4%. CDW Corporation’s quarterly revenues are estimated to increase 5.1% year over year to $5.21 billion.
Keysight currently carries a Zacks Rank #2 and has an Earnings ESP of +1.15%. The company is slated to report its first-quarter fiscal 2022 results on Feb 17. Keysight’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 7.1%.
The Zacks Consensus Estimate for Keysight’s first-quarter earnings stands at $1.56 per share, implying a year-over-year increase of 9.1%. KEYS is estimated to report revenues of $1.24 billion, which suggests growth of 5.3% from the year-ago quarter.
Image: Bigstock
Paycom (PAYC) Set to Report Q4 Earnings: What's in Store?
Paycom Software (PAYC - Free Report) is slated to report fourth-quarter 2021 results on Feb 8.
For the fourth quarter, management estimates revenues between $274.5 million and $276.5 million.
The Zacks Consensus Estimate for quarterly revenues is pegged at $275.8 million, indicating an increase of 24.8% year over year. The consensus mark for earnings is $1.08 per share, suggesting a 28.6% rise from the prior-year quarter.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.3%.
Let’s see how things have shaped up before the upcoming announcement.
Paycom stock has underperformed the Zacks Computer and Technology Sector over the past year. PAYC stock plunged 24.1% in the last 12 months while the sector increased 2.3% over the same time frame.
One-Year price Performance
Factors to Note Ahead of Q4 Results
Paycom’s fourth-quarter performance is likely to have benefited from new business wins and the high-margin recurring revenue business. The company’s employee usage strategy, sales efforts and investments are anticipated to have boosted sales growth during the period in discussion.
The cloud-based human capital management solution provider had earlier mentioned its intention to aggressively drive advertising and marketing efforts 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.
However, Paycom’s quarterly performance is expected to have been hurt by pandemic-triggered economic and business disruptions. Some of the company’s businesses are directly related to the number of headcounts at its client offices.
Moreover, form filing might have been negatively impacted by the reduced workforce in industries hit hardest by the pandemic, coupled with a lower turnover in those industries.
What Our Model Says
Our proven model does not predict an earnings beat for PAYC 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. However, that’s not the case here.
Paycom currently carries a Zacks Rank of #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Analog Devices (ADI - Free Report) , CDW Corporation (CDW - Free Report) and Keysight Technologies (KEYS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Analog Devices carries a Zacks Rank #2 and has an Earnings ESP of +0.25%. The company is scheduled to report first-quarter fiscal 2022 results on Feb 16. Analog Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ADI’s first-quarter earnings is pegged at $1.79 per share, indicating year-over-year growth of 24.3%. The consensus mark for revenues stands at $2.61 billion, suggesting a year-over-year increase of 67.3%.
CDW Corporation is slated to report fourth-quarter 2021 results on Feb 9. The company carries a Zacks Rank #2 and has an Earnings ESP of +2.00% at present. CDW Corporation’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 12.2%.
The Zacks Consensus Estimate for CDW’s quarterly earnings is pegged at $1.90 per share, suggesting a year-over-year improvement of 4.4%. CDW Corporation’s quarterly revenues are estimated to increase 5.1% year over year to $5.21 billion.
Keysight currently carries a Zacks Rank #2 and has an Earnings ESP of +1.15%. The company is slated to report its first-quarter fiscal 2022 results on Feb 17. Keysight’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 7.1%.
The Zacks Consensus Estimate for Keysight’s first-quarter earnings stands at $1.56 per share, implying a year-over-year increase of 9.1%. KEYS is estimated to report revenues of $1.24 billion, which suggests growth of 5.3% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.