Many analysts cut the price target of Paycor HCM Inc (NASDAQ:PYCR) following its Q4 FY23 results reported yesterday.
Adjusted EPS of $0.08 beat the $0.06 estimate, and sales of $140.00 million exceeded the consensus of $136.55 million.
The company expects revenues of $138 million - $140 million (vs. $142.28 million consensus) for Q1 and $644 million- $650 million (vs. consensus: $647.16 million) for FY24.
BMO Capital Markets analyst Daniel Jester reduced the price target to $24 from $27 and maintained a Market Perform rating.
The analyst sees the buy-side expectations dropping following Paylocity's results and believes a back-half core growth acceleration is difficult to achieve amid the present macro environment.
Jester also expects sales investments to take time to mature, and comps are likely to toughen into a challenging macro environment.
The analyst revised the FY24 revenue estimate to $649 million from $646 million and EPS to $0.44 from $0.43.
JMP Securities analyst Patrick Walravens cut the price target to $32 from $42 while maintaining the Market Outperform rating.
The analyst sees headwinds from weakening labor market growth but expects long-term growth potential on a differentiated cloud-based HCM suite, an opportunity to boost sales coverage, and an experienced leadership team.
The analyst lowered FY24 adjusted EPS estimate to $0.40 from $0.43 (consensus $0.43) on revenue of $648.5 million (+17% y/y) due to expected higher interest income expenses while increasing FY25 adjusted EPS estimate to $0.54 from $0.52 (consensus $0.53) on revenue of $756.9 million (+17% y/y).
Also, reiterating a Neutral rating, JP Morgan lowered the price target to $23 from $26, DA Davidson to $22 from $24, Citigroup to $26 from $28, and Mizuho to $22 from $24.
Price Action: PYCR shares are trading lower by 5.55% at $21.60 on the last check Thursday,