Payroll and human resources software provider, Paylocity (NASDAQ:PCTY) will be reporting results tomorrow after the bell. Here's what you need to know.
Last quarter Paylocity reported revenues of $308.5 million, up 34.7% year on year, beating analyst revenue expectations by 2.29%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but underwhelming revenue guidance for the next year.
Is Paylocity buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Paylocity's revenue to grow 24.9% year on year to $316.3 million, slowing down from the 39.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.13 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 3.81%.
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 (NYSE:PAYC) delivered top-line growth of 21.6% year on year, missing analyst estimates by 1.16%, and Paychex (NASDAQ:PAYX) reported revenues up 6.62% year on year, exceeding estimates by 0.97%. Paychex was flat after the results, and Paycom traded down 23.6%.
Read the full analysis of Paycom's and Paychex's results on StockStory.
There has been a stampede out of high valuation technology stocks and while some of the finance and HR software stocks have fared somewhat better, they have not been spared, with share price declining 4.45% over the last month. Paylocity is down 14.8% during the same time, and is heading into the earnings with analyst price target of $250.7, compared to share price of $160.
The author has no position in any of the stocks mentioned.
