Paycom stock drops as forecast earnings metric falls short of Street view
Paycom Software Inc. PAYC, +4.62% shares fell in the extended session Tuesday after one metric of the payroll and human resources technology company’s outlook fell short of Wall Street estimates. Paycom shares dropped 7.5% after hours, following a 4.6% rise to close the regular session at $129.59. For the fourth quarter, the company forecast adjusted earnings before interest, tax, depreciation and amortization of $49.5 million to $51.5 million on revenue of $142.5 million to $144.5 million. Analysts expect adjusted EBITDA of $51.2 million on revenue of $142.6 million. The company reported third-quarter net income of $28.8 million, or 49 cents a share, compared with $20.9 million, or 35 cents a share, in the year-ago period. Adjusted earnings were 52 cents a share. Revenue rose to $133.3 million from $101.3 million in the year-ago period. Analysts surveyed by FactSet had forecast earnings of 51 cents a share on revenue of $130.5 million.
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