Business Corpus: Paycom Stock Takes Hit As Earnings Edge Estimates, Guidance DisappointsPaycom Software late Tuesday reported third-quarter adjusted profit and revenue that were just above analyst forecasts, but guidance disappointed. Paycom stock fell in after-hours trading. The post Paycom Stock Takes Hit As Earnings Edge Estimates, Guidance Disappoints appeared first on Investor's Business Daily.

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Paycom Software (PAYC) late Tuesday reported third-quarter adjusted profit and revenue just above analyst forecasts, and its guidance for the current period disappointed. Paycom stock plummeted in after-hours trading.

The maker of human-resources and payroll-processing software said adjusted third-quarter earnings were 52 cents a share, up 79% from a year ago, with revenue rising 32% to $133.3 million, edging expectations. A year earlier, Paycom earned 29 cents a share on sales of $101.3 million.

Analysts expected the company to report earnings of 51 cents on sales of $130.2 million for the period ended Sept. 30.

The company said adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 22% to $49.2 million in the September quarter. Analysts had estimated $46.9 million.

Paycom EBITDA Outlook Light

For the December quarter, Paycom forecast EBITDA of $50.5 million at the midpoint of its own guidance. Analysts had projected EBITDA of $51.4 million.

The enterprise software maker said it expects December-quarter revenue of $143.5 million, squeaking by estimates of $142.4 million.

Paycom stock plunged 8.9% to 118 in after-hours trading on the stock market today. Paycom stock had climbed 4.6% in Tuesday's regular session.

The company has expanded its direct-sales strategy by adding regional offices. That has enabled the company to gain market share for small and midsize business customers vs. service bureaus.

Paycom stock has climbed 62% from a year ago as of Tuesday's market close. Many enterprise software stocks have sold off in October amid the market correction.

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The post Paycom Stock Takes Hit As Earnings Edge Estimates, Guidance Disappoints appeared first on Investor's Business Daily.