: Paycom’s stock plunges 25% as payroll company whiffs on earnings outlook

by | Oct 31, 2023 | Stock Market

Paycom Software Inc. shares were set to shed a quarter of their value, based on Tuesday’s after-hours action, as the company, which makes payroll and human-resources software, came up short with its quarterly outlook. The company expects $420 million to $425 million in revenue for the fourth quarter, while analysts were modeling $452 million. Paycom
also anticipates adjusted earnings before interest, taxes, depreciation and amortization of $169 million to $174 million for the period, while analysts had been calling for $189 million.

For the third quarter, Paycom delivered net income of $75.2 million, or $1.30 a share, compared with $52 million, or 90 cents a share, in the year-earlier period. The company notched adjusted earnings per share of $1.77, ahead of the $1.61 that analysts were projecting. Paycom’s third-quarter revenue clocked in at $406.3 million, above the $334.2 million that the company recorded a year before. The FactSet consensus was for $411.2 million. “Our third-quarter fundamentals were strong with solid revenue and earnings growth,” Chief Executive Chad Richison said in a release. Shares of other payroll-related softwa …

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