Stock Story -
Payroll and human resources software provider, Paylocity (NASDAQ:PCTY) will be reporting results tomorrow afternoon. Here's what investors should know.
Paylocity beat analysts' revenue expectations by 1% last quarter, reporting revenues of $401.3 million, up 18.1% year on year. It was a solid quarter for the company, with a significant improvement in its gross margin and strong sales guidance for the next quarter.
Is Paylocity a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Paylocity's revenue to grow 13.5% year on year to $350 million, slowing from the 34.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.29 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 2.8% on average.
Looking at Paylocity's peers in the finance and HR software segment, only Paychex (NASDAQ:PAYX) has reported results so far. It met analysts' revenue estimates, delivering year-on-year sales growth of 5.3%. The stock was down 5.7% on the results.
Read the full analysis of Paychex's results on StockStory. There has been positive sentiment among investors in the finance and HR software segment, with share prices up 2.2% on average over the last month. Paylocity is up 9.1% during the same time and is heading into earnings with an average analyst price target of $181.6 (compared to the current share price of $144.3).
