HR and payroll software provider Paylocity (NASDAQ: PCTY) will be reporting earnings this Tuesday after market hours. Here’s what to look for.
Paylocity beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $400.7 million, up 12.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and revenue guidance for next quarter 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 10.4% year on year to $400.6 million, slowing from the 14.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.57 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 1.8% on average.
Looking at Paylocity’s peers in the hr software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Asure Software delivered year-on-year revenue growth of 23.7%, beating analysts’ expectations by 1.6%, and Paychex reported revenues up 16.8%, in line with consensus estimates. Asure Software traded up 8.3% following the results while Paychex was down 3.5%.
Read our full analysis of Asure Software’s results here and Paychex’s results here.
Investors in the hr software segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. Paylocity is down 9.7% during the same time and is heading into earnings with an average analyst price target of $213.95 (compared to the current share price of $141.27).
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