Paylocity (PCTY) Q3 Earnings and Revenues Surpass Estimates

Core Viewpoint - Paylocity (PCTY) reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.09 per share, and showing an increase from $2.21 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 16.27%, with the company previously expected to post earnings of $1.39 per share but actually reporting $1.52 per share, resulting in a surprise of 9.35% [2] - Paylocity's revenues for the quarter ended March 2025 were $454.55 million, surpassing the Zacks Consensus Estimate by 2.83%, compared to $401.28 million in the same quarter last year [3] - The company has consistently exceeded consensus revenue estimates over the last four quarters [3] Stock Performance - Paylocity shares have declined approximately 3.7% since the beginning of the year, while the S&P 500 has seen a decline of 5.3% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $381.46 million, and for the current fiscal year, it is $6.65 on revenues of $1.56 billion [8] - The estimate revisions trend for Paylocity is mixed, and changes in earnings expectations may occur following the recent earnings report [7] Industry Context - The Internet - Software industry, to which Paylocity belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, which may impact stock performance [9] - Another company in the same industry, eGain (EGAN), is expected to report a significant decline in earnings, with a projected EPS of $0.01, down 87.5% year-over-year [10]