By Sam Boughedda
Paycor HCM Inc (NASDAQ:PYCR) opened higher during Wednesday's session before declining after the company posted earnings after the close on Tuesday, missing earnings estimates but topping revenue expectations.
Paycor reported a fiscal fourth-quarter loss per share of $0.14, $0.16 worse than the analyst estimate of $0.02. Meanwhile, revenue for the quarter came in at $111 million versus the consensus estimate of $103.47 million.
Paycor, which completed its first year as a public company, saw Q4 revenue grow 22$ year-over-year.
Looking ahead, the company sees fiscal Q1 2023 revenue between $112 million and $114 million, with fiscal 2023 revenue between $510 million and $516 million.
Following the report, a Jefferies analyst increased the firm's price target on the stock to $36 from $28, stating its "F4Q results beat across the board."
"Total revs of $111M (+26% y/y) beat consensus on strong Recurring revs ($110M; +25% y/y), which outperformed consensus by ~7% on healthy bookings performance from new business wins and cross-sell. Gross profit of $73.4M (66.1% mgn) rose 70 bps y/y and beat consensus of $68.1M (65.8% mgn). The GM beat and tightly managed S&M drove op. income of $9.2M (8.3% mgn), ahead of consensus of $4M (3.9% mgn)," said the analyst, who has a Buy rating on the stock.
"Recurring rev growth accelerated to +25% y/y from 23% in F3Q despite a much tougher comp. FY23 total rev and op income guidance both beat consensus as well. Assuming mgmt used its historical guidance framework, the initial growth outlook (17-18% ex-float) suggests PYCR will likely deliver another year of 20% recurring rev growth, which should remove the debate on PYCR's ability to sustain this level," he added.