Shares of Paylocity Holding experienced a decline on Thursday as the company revised its sales outlook for the year. The stock fell by 7% to $159.90 during after-hours trading, bringing it down by almost 23% over the past year.
Paylocity, a payroll provider, stated that it now anticipates total revenue for the full year to be approximately $1.38 billion, down from its previous projection of around $1.4 billion.
This revised forecast followed the company’s announcement of better-than-expected second-quarter results. For the quarter, net income increased to $38.1 million, or 67 cents per share, compared to $15.6 million, or 28 cents per share, from the previous year.
Adjusted earnings came in at $1.49 per share, surpassing analysts’ expectations of $1.28 per share. Second-quarter revenue also saw growth, rising to $326.4 million from $273 million, exceeding expectations of $324.6 million.
However, Paylocity’s sales outlook for the fiscal third quarter fell short of expectations. The company expects total revenue between $395 million and $399 million, reflecting a 17% growth from the previous year. Analysts had anticipated $401 million.
Overall, while Paylocity reported strong second-quarter results, its revised sales outlook and third-quarter projections have caused a decline in stock value.
