HR and payroll software provider Paylocity (NASDAQ:PCTY) will be reporting results this Thursday after market close. Here’s what to look for.
Paylocity beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $408.2 million, up 12.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
Is Paylocity a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Paylocity’s revenue to grow 8.4% year on year to $408.6 million, slowing from the 15.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.60 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 2% on average.
With Paylocity being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for finance and hr software stocks. However, the whole sector has faced a sell-off over the last month with stocks in Paylocity’s peer group down 17.8% on average. Paylocity is down 16.7% during the same time and is heading into earnings with an average analyst price target of $191 (compared to the current share price of $127.17).
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