Paycom Software Stock Tanks After-Hours Fueled By Weak Outlook: Details

Paycom Software, Inc. PAYC shares dropped in Tuesday's after-hours session after reporting worse-than-expected third-quarter sales results and issued fourth-quarter and full-year 2023 revenue guidance below estimates.

What To Know: Quarterly earnings clocked in at $1.77 per share, which beat the analyst consensus estimate of $1.61, a 39.37% increase over earnings of $1.27 per share from last year.

The company reported quarterly sales of $406.30 million, which missed the analyst consensus estimate of $411.18 million, a 21.59% increase over sales of $334.17 million in the same period last year.

Also, as of Sept. 30, Cash and Cash Equivalents were $484.0 million, compared to $400.7 million as of Dec. 31, 2022.

The strong after-hours selloff in Paycom shares appears to be heavily impacted by weak guidance. Fourth-quarter revenue guidance is anticipated to be between $420 million and $425 million, well below the $452.27 million estimate. Full-year 2023 revenue is estimated to be between $1.679 billion and $1.684 billion, versus the estimate of $1.72 billion.

"Our third quarter fundamentals were strong with solid revenue and earnings growth," said Paycom's founder, chairman and CEO, Chad Richison. "Our innovations have transformed the payroll and HCM industry for 25 years, and we're excited to deliver even stronger value to our clients for years to come."

Related Link: Why Danaher Corporation Stock Gained Today

PAYC Price Action: Shares of PAYC were down 26.10% at $180.00 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by Thomas Breher from Pixabay