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Paycor HCM, Inc. (NASDAQ:PYCR) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to US$22.83 in the week after its latest quarterly results. Revenues of US$123m beat expectations by a respectable 4.2%, although statutory losses per share increased. Paycor HCM lost US$0.10, which was 34% more than what the analysts had included in their models. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Paycor HCM
Taking into account the latest results, the current consensus from Paycor HCM's 14 analysts is for revenues of US$490.5m in 2023, which would reflect a huge 21% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 47% to US$0.39. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$478.7m and losses of US$0.38 per share in 2023. So it's pretty clear consensus is mixed on Paycor HCM after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a moderate increase in per-share loss expectations.
There was no major change to the consensus price target of US$32.71, with growing revenues seemingly enough to offset the concern of growing losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Paycor HCM analyst has a price target of US$42.00 per share, while the most pessimistic values it at US$24.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Paycor HCM's past performance and to peers in the same industry. It's clear from the latest estimates that Paycor HCM's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 11% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Paycor HCM is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.