Payroll and human resources software provider, Paylocity (NASDAQ:PCTY) will be announcing earnings results tomorrow afternoon. Here's what to expect.
Last quarter Paylocity reported revenues of $245.9 million, up 32.2% year on year, beating analyst revenue expectations by 1.79%. It was a very strong quarter for the company, with a significant improvement in gross margin and a solid top line growth.
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 30.1% year on year to $217.9 million, in line with the 28.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 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 2.54%.
Looking at Paylocity's peers in the finance and HR software segment, only Paycom has so far reported results, delivering top-line growth of 30.8% year on year. The company traded up 1.69% on the results. Read our full analysis of Paycom Software's results here.
Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.79% over the last month. Paylocity is up 11.6% during the same time, and is heading into the earnings with analyst price target of $234.1, compared to share price of $211.4.
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The author has no position in any of the stocks mentioned.