Paylocity (PCTY) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2022/08/03 4:14 am EDT
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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.

Paylocity Total Revenue

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.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.