Why Paylocity (PCTY) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Paylocity, a provider of cloud-based payroll and human-resources software, has a strong track record of exceeding earnings estimates, with an average surprise of 18.53% over the last two quarters [1]. Group 1: Earnings Performance - For the last reported quarter, Paylocity achieved earnings of $2.21 per share, surpassing the Zacks Consensus Estimate of $1.94 per share, resulting in a surprise of 13.92% [6]. - In the previous quarter, the company was expected to report earnings of $1.21 per share but delivered $1.49 per share, yielding a surprise of 23.14% [6]. - The company currently has an Earnings ESP of +3.45%, indicating a positive outlook on its near-term earnings potential [3]. Group 2: Market Position and Predictions - Paylocity is positioned within the Zacks Internet - Software industry, making it a candidate for maintaining its earnings-beat streak in upcoming reports [5]. - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) suggests a high likelihood of another earnings beat [2][3]. - Recent estimates for Paylocity have been trending upward, reinforcing the potential for an earnings surprise [7].