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

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Company beats on earnings but misses on revenue with third-quarter results

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.

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.

 

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