Payroll and human resources software provider, Paylocity (NASDAQ:PCTY) will be reporting earnings tomorrow afternoon. Here’s what you need to know.
Paylocity beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $357.3 million, up 15.8% year on year. It was a weaker quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter.
Is Paylocity a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Paylocity’s revenue to grow 12.2% year on year to $356.2 million, slowing from the 25.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.41 per share.
The majority of analysts covering the company have 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 2.4% on average.
Looking at Paylocity’s peers in the finance and HR software segment, only Paychex has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 2.5%. The stock traded up 4.9% on the results.
Read our full analysis of Paychex’s earnings results here.There has been positive sentiment among investors in the finance and HR software segment, with share prices up 3.6% on average over the last month. Paylocity is up 6.2% during the same time and is heading into earnings with an average analyst price target of $187.46 (compared to the current share price of $175.13).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
