Paycom Software Earnings Top Estimates, Revenue Outlook Light

Paycom Software ( PAYC ) on Tuesday reported earnings that topped expectations, but revenue guidance was light and shares sank after hours.

Paycom said Tuesday that adjusted third-quarter earnings were 29 cents a share, up 93% from a year ago, with revenue rising 31% to $101.3 million, topping consensus estimates.

A year earlier, Paycom Software earned 15 cents a share on sales of $77.3 million. Analysts expected Paycom Software to report earnings of 19 cents a share on sales of $100.5 million for the period ended Sept. 30.

In the current quarter, Paycom forecast revenue of $112.5 million  at its midpoint of guidance, up 30% from a year earlier, slightly below estimates of $113.1 million.

“Fourth-quarter revenue guidance could disappoint some investors. …” said Abhey Lamba, a Mizuho Securities analyst in a report. “There could be some ongoing conservatism.”

Shares in the maker of human-resources and payroll-processing software fell 5.4% to close at 77.77 in after-hours trading on the  stock market today .

In Tuesday’s regular session, shares in Paycom rose 2.6% to 82.20. Paycom has shot up 80% in 2017.

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