Paylocity (PCTY) Beats On Q1 Earnings, Raises 2020 Guidance
Zacks Investment Research | Nov 01, 2019 05:23AM ET
Paylocity Holding (NASDAQ:PCTY) delivered first-quarter fiscal 2020 non-GAAP earnings of 36 cents per share, topping the Zacks Consensus Estimate of 27 cents. The bottom line was also way higher than the year-ago quarter’s 20 cents.
Additionally, Paylocity’s revenues of $126.7 million improved 26% year over year and also trumped the Zacks Consensus Estimate of $117 million.
The company is benefiting from the growing adoption of its solutions among clients with less than 50 employees. Moreover, healthy momentum in the company’s core and upper end of the market is a tailwind.
Further, the release of Learning Management System and Community portal, which garnered a positive feedback from clients, is encouraging. Also, the addition of on-demand pay to its portfolio is likely to boost client wins going forward.
The better-than-expected earnings coupled with a bullish guidance by management for the full year are expected to buoy investor confidence in the stock. Nonetheless, the near-term headwinds to margin given the lower interest rate are a concern.
Paylocity Holding Corporation Price, Consensus and EPS Surprise
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