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Payroll and human resources software provider, Paylocity (NASDAQ:PCTY) will be announcing earnings results tomorrow after market close. Here’s what to look for.
Paylocity beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $363 million, up 14.3% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Paylocity a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Paylocity’s revenue to grow 12.4% year on year to $367 million, slowing from the 19.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paylocity has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.9% on average.
Looking at Paylocity’s peers in the finance and HR software segment, only Dayforce has reported results so far.
Read our full analysis of Dayforce’s earnings results here.
There has been positive sentiment among investors in the finance and hr software segment, with share prices up 6.4% on average over the last month. Paylocity is up 7.7% during the same time and is heading into earnings with an average analyst price target of $217.33 (compared to the current share price of $212).
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