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Paycom (PAYC) to Report Q4 Earnings: What's in the Cards?
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Paycom Software, Inc. (PAYC - Free Report) is set to report fourth-quarter 2017 earnings results on Feb 6. This company has witnessed a remarkable streak of beating earnings estimates, especially when looking at the previous four reports. In fact, over the trailing four quarters, Paycom Software surpassed the Zacks Consensus Estimate, with an average positive earnings surprise of 36.1%.
Let’s see how things are shaping up prior to this announcement.
What to Expect?
The Zacks Consensus Estimate for the quarter is pegged at 23 cents, reflecting a year-over-year increase of 27.8%. The Zacks Consensus Estimate for sales of $113 million indicates around 28.7% growth from the prior-year quarter.
Factors to Consider
Paycom Software provides cloud-based human capital management (HCM) software solution delivered as Software-as-a-Service (SaaS) with functionality and data analytics to manage the complete employment lifecycle, from recruitment to retirement.
The company’s continued focus on investing in the SaaS technology and mobile applications has been driving revenues. We believe Paycom Software’s cloud-based solution has greater demand across a wide section of verticals. Larger companies have greater and more complex HCM needs, and Paycom Software’s solution is evolving to serve those.
Growth of cloud computing has supported the company’s SaaS delivery model. According to Gartner (IT - Free Report) , the global SaaS market is expected to increase at a four-year compound annual growth rate (CAGR) (2017-2019) of 18.4%. With its SaaS-based applications, we believe Paycom Software is well positioned to lead the market for advanced human-capital management and payroll software solutions.
Furthermore, we expect the company’s fourth-quarter revenues to be positively influenced by elevated recurring revenues and higher traction in cloud-based offerings. Also, better-than-expected demand for advanced human-capital management and payroll software solutions are the other catalysts.
We also believe higher adoption of Paycom Software’s Affordable Care Act (ACA) dashboard application that tracks employee count, employee status and health-care plan affordability will act as a tailwind. Also, Paycom Software might witness long-term growth by successfully cross-selling fresh products to the existing client base, which is likely to bolster revenues.
Our proven model does not conclusively show that Paycom Software is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Paycom Software carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company has an Earnings ESP of 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 23 cents. The combination of Paycom Software's Zacks Rank #3 and Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
GrubHub Inc. has an Earnings ESP of +5.39% and a Zacks Rank #2.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Image: Bigstock
Paycom (PAYC) to Report Q4 Earnings: What's in the Cards?
Paycom Software, Inc. (PAYC - Free Report) is set to report fourth-quarter 2017 earnings results on Feb 6. This company has witnessed a remarkable streak of beating earnings estimates, especially when looking at the previous four reports. In fact, over the trailing four quarters, Paycom Software surpassed the Zacks Consensus Estimate, with an average positive earnings surprise of 36.1%.
Let’s see how things are shaping up prior to this announcement.
What to Expect?
The Zacks Consensus Estimate for the quarter is pegged at 23 cents, reflecting a year-over-year increase of 27.8%. The Zacks Consensus Estimate for sales of $113 million indicates around 28.7% growth from the prior-year quarter.
Factors to Consider
Paycom Software provides cloud-based human capital management (HCM) software solution delivered as Software-as-a-Service (SaaS) with functionality and data analytics to manage the complete employment lifecycle, from recruitment to retirement.
The company’s continued focus on investing in the SaaS technology and mobile applications has been driving revenues. We believe Paycom Software’s cloud-based solution has greater demand across a wide section of verticals. Larger companies have greater and more complex HCM needs, and Paycom Software’s solution is evolving to serve those.
Growth of cloud computing has supported the company’s SaaS delivery model. According to Gartner (IT - Free Report) , the global SaaS market is expected to increase at a four-year compound annual growth rate (CAGR) (2017-2019) of 18.4%. With its SaaS-based applications, we believe Paycom Software is well positioned to lead the market for advanced human-capital management and payroll software solutions.
Furthermore, we expect the company’s fourth-quarter revenues to be positively influenced by elevated recurring revenues and higher traction in cloud-based offerings. Also, better-than-expected demand for advanced human-capital management and payroll software solutions are the other catalysts.
We also believe higher adoption of Paycom Software’s Affordable Care Act (ACA) dashboard application that tracks employee count, employee status and health-care plan affordability will act as a tailwind. Also, Paycom Software might witness long-term growth by successfully cross-selling fresh products to the existing client base, which is likely to bolster revenues.
Paycom Software, Inc. Price and EPS Surprise
Paycom Software, Inc. Price and EPS Surprise | Paycom Software, Inc. Quote
What the Zacks Model Unveils?
Our proven model does not conclusively show that Paycom Software is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Paycom Software carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company has an Earnings ESP of 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 23 cents. The combination of Paycom Software's Zacks Rank #3 and Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +4.71% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
GrubHub Inc. has an Earnings ESP of +5.39% and a Zacks Rank #2.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>