Payroll and human resources software provider, Paylocity (NASDAQ:PCTY) will be reporting results tomorrow after the bell. Here's what to expect.
Last quarter Paylocity reported revenues of $228.9 million, up 36.7% year on year, beating analyst revenue expectations by 5.04%. It was a strong quarter for the company, with very optimistic guidance for the next quarter and a full year guidance beating analysts' expectations.
Is Paylocity buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Paylocity's revenue to grow 31.4% year on year to $238.8 million, in line with the 33.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.64 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.77%.
Looking at Paylocity's peers in the finance and HR software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Paycom Software reported revenues up 30.4% year on year, exceeding estimates by 1.79%. Paycom traded up 1.91% on the results, Read our full analysis of Paycom Software's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 2.98% over the last month. Paylocity is down 6.78% during the same time, and is heading into the earnings with analyst price target of $272.20, compared to share price of $224.87.
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The author has no position in any of the stocks mentioned.