Earnings Preview: Paylocity (PCTY) Q4 Earnings Expected to Decline

Core Viewpoint - Paylocity (PCTY) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with the consensus outlook indicating a significant factor that could influence its near-term stock price [1][2]. Financial Expectations - The upcoming earnings report is expected to show quarterly earnings of $1.38 per share, reflecting a year-over-year decrease of 6.8%, while revenues are projected to reach $388.7 million, an increase of 8.8% from the previous year [3]. - The consensus EPS estimate has been revised 1.84% higher in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +4.45% for Paylocity, suggesting that analysts have recently become more optimistic about the company's earnings [12]. - However, the stock holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Paylocity exceeded the expected earnings of $2.09 per share by delivering $2.43, resulting in a surprise of +16.27% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Industry Comparison - Palantir Technologies Inc. (PLTR), another player in the Zacks Internet - Software industry, is expected to report earnings per share of $0.14 for the same quarter, marking a year-over-year increase of 55.6%, with revenues projected at $938.33 million, up 38.4% from the previous year [18][19].