Four Notable Tech Stocks With Earnings After Close Worth Watching

By | May 3, 2016

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Earnings reports are on tap for Paycom Software ( PAYC ), Rubicon Project ( RUBI ), Zendesk ( ZEN ) and Zillow Group ( ZG ) after the market close Tuesday, and all sport long streaks of double-digit, or higher, sales growth. Earnings reports can often create big stock moves, up or down, depending on whether the company misses or beats Wall Street’s expectations, and whether its outlook for the upcoming quarter and year beat or miss expectations. Paycom is expected to report revenue of $83.4 million, up 51% year over year and maintaining a string of double-digit gains going back more than four years. The consensus on earnings per share minus items is 20 cents, up 67%. Paycom provides a cloud-based employment management platform with a software-as-a-service business model, with customers buying the software as needed. The company came public in April 2014. Paycom has a strong IBD Composite Rating (CR) of 96 and the highest-possible EPS Rating of 99. Credit Suisse analyst Michael Nemeroff has an outperform rating on Paycom stock, and price target of 43. “We believe that Paycom is well positioned to deliver strong revenue growth over the next two years,” Nemeroff  wrote in an earnings preview report. Paycom stock was near 38, down 2.5%, in morning trading in the stock market today . Rubicon Revenue Could Cross At 60% Gain Rubicon Project is expected to report revenue of $59.4 million, up 60% and maintaining double- or triple-digit revenue growth going back more than four years. The EPS consensus minus items is 3 cents, vs. 2 cents last year. Rubicon made its IPO in April 2014. It provides an online platform that helps optimize digital ad buying, selling and placement. The stock has a strong 98 CR and an EPS Rating of 80. RBC Capital Markets analyst Andrew Bruckner rates Rubicon stock outperform, with a price target of 22. Rubicon stock was near 19.70, flat, Tuesday morning. Zendesk Also Growing By Double-Digit Percentages Zendesk is expected to report revenue of $63.9 million, up 51% and maintaining a string of double- and triple-digit revenue growth going back more than four years. The consensus on EPS minus earnings is a 10-cent loss. The company, which came public in May 2014, has yet to show a profit. On Monday, Zendesk announced it hired a new chief financial officer, Elena Gomez, who previously was senior vice president of finance and strategy for Salesforce.com ( CRM ). Zendesk is a cloud-based provider of customer service software. The stock has a CR of 64 and EPS Rating of 46. Rosenblatt Securities analyst Kirk Adams rates Zendesk stock a buy, with a price target of 25. “We anticipate a solid report and positive commentary on the recently completed quarter and their future prospects,” Adams wrote in an earnings preview. Zendesk stock was near 23, down 2%, Tuesday morning. Zillow Seen Swinging To A Loss Zillow Group is expected to report earnings of 176.6 million, up 39% and maintaining double or triple digit growth going back more than four years. The EPS consensus is a 9-cent loss, swinging from a 5-cent profit in the year-earlier quarter. Zillow, the leading real estate website, came public in July 2011. The stock has a CR of 54  and EPS Rating of 50. Cowen analyst Thomas Champion has an underperform rating on Zillow and a price target of 12. Zillow stock was near 25.50, down 2%, Tuesday morning. Scalper1 News

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