Paycor HCM, Inc. (PYCR) delivered positive news to investors on Wednesday, exceeding both earnings and revenue expectations for the fourth quarter. The company reported earnings of 11 cents per share, surpassing the analyst consensus estimate of 9 cents. Revenue for the quarter reached $164.8 million, exceeding the expected $161.172 million. This strong performance is attributed to Paycor’s strategic initiatives, including adding new employees and expanding its revenue per employee per month (PEPM).
Raul Villar, Jr., Paycor’s Chief Executive Officer, highlighted the company’s success in capturing market share through its comprehensive and modern HCM solution. “Paycor delivered revenue growth of 18% for the quarter and 19% for the year, propelled by strong execution against our strategic growth initiatives to add employees and expand PEPM,” he stated. “We continued winning market share by delivering substantial value through our robust, modern HCM solution that powers people and performance.”
Looking ahead, Paycor anticipates first-quarter revenue between $161 million and $163 million. For the full fiscal year 2025, the company projects revenue in the range of $722 million to $729 million.
Following the announcement, Paycor HCM shares experienced a 2.7% increase, closing at $12.63 on Wednesday. Several analysts adjusted their price targets for Paycor HCM. Needham analyst Scott Berg maintained a ‘Buy’ rating but lowered the price target from $42 to $20. Similarly, BTIG analyst Matt VanVliet kept a ‘Buy’ rating but reduced the price target from $26 to $20. Stifel analyst Brad Reback also maintained a ‘Buy’ rating, lowering the price target from $22 to $19. JP Morgan analyst Mark Murphy, however, maintained a ‘Neutral’ rating and decreased the price target from $19 to $17.
Overall, the positive earnings report and optimistic analyst outlook indicate a promising future for Paycor HCM. Investors seeking to add PYCR to their portfolios may find the current market conditions favorable, given the company’s strong performance and growth potential.
