Q2 Earnings Review: Finance and HR Software Stocks Led by American Express Global Business Travel (NYSE:GBTG)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how American Express Global Business Travel (NYSE:GBTG) and the rest of the finance and hr software stocks fared in Q2.
Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software.
The 12 finance and hr software stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.8% below.
In light of this news, share prices of the companies have held steady as they are up 3.2% on average since the latest earnings results.
Best Q2: American Express Global Business Travel (NYSE:GBTG)
Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE:GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.
American Express Global Business Travel reported revenues of $870 million, up 37.9% year on year. This print exceeded analysts’ expectations by 7.7%. Overall, it was an exceptional quarter for the company.
American Express Global Business Travel pulled off the biggest analyst estimate beat and fastest revenue growth in the group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $9.47.
Is now the time to buy American Express Global Business Travel? Access our full analysis of the earnings results here, it’s free.
Paycom (NYSE:PAYC)
Pioneering the concept of employees doing their own payroll with its “Beti” technology, Paycom (NYSE:PAYC) provides cloud-based human capital management software that helps businesses manage the entire employment lifecycle from recruitment to retirement.
Paycom reported revenues of $531.2 million, up 9.8% year on year, outperforming analysts’ expectations by 3.5%. The business had a very strong quarter with full-year EBITDA guidance exceeding analysts’ expectations and an impressive beat of analysts’ billings estimates.
