Paycom Software, Inc. | $PAYC Stock | Shares Shine On Upbeat Second Quarter Profit & Revenue

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Paycom Software, Inc. (NYSE: PAYC)


Shares of Paycom Software were exchanging hands at $127.14 after gaining $20.89, or 19.66% at $127.14 at 1:30 PM on Wednesday, in the wake of better-than-expected quarterly results for the three months ended June 30, 2018.

The US human capital management software company announced its second-quarter financial results on Tuesday, with revenue and earnings jumping 31% and 69%, respectively.

Paycom also lifted its full-year adjusted earnings outlook by $18 million and boasted its full-year net sales outlook by $9 million.

Several analysts have reported their target for the stock, saying its might hit $130 high, while the low price target and average price target is $95 and $115.94, respectively. The stock has climbed 32% since the beginning of the year.

PAYC Earnings & Outlook

Earnings in the June quarter jumped 46% to $53.5 million before interest, taxes, depreciation and amortization, compared to $36.6 million in the year-ago quarter. Adjusted earnings grew 126% to $0.59 per share from the same period in the previous year.

Revenue soared 31% to $128.8 million from $98.2 million in the second quarter of last year. Analysts had expected the company to report adjusted earnings per share of $0.48 on revenue of $124.3 million.

For the current quarter, the company hopes to report revenue of $130 million and earnings of $46.6 million. Analysts expect it to post revenue of $127.4 million and earnings of $45.4 million.

Paycom CEO Comments

Paycom continued its momentum, driving strong revenue and profits while also returning solid value to our stockholders with the repurchase of more than 400,000 shares in the second quarter. We expanded our sales reach by opening two new offices and also completed construction of a fourth building at our campus headquarters in Oklahoma City,” said Chad Richison founder and Chief Executive Officer of Paycom.

Paycom Software, Inc. Company Profile

Paycom Software, Inc. engages in the provision of cloud-based human capital management software service for small and medium-sized businesses in the U.S.

The company provides data analytics and functionality that are needed by businesses in order to manage the employment life cycle.

Its human capital management solution offers an application suite in talent acquisition areas, including candidate trackers, applicant tracking, on-boarding, background checks, tax-credit services, and e-verify.

It also offers labor and time management services, such as attendance and time, schedule/scheduling exchange, push reporting/labor management reports, time-off requests, labor allocation, and geotracking/geofencing.

The human capital management solution also provides payroll applications consisting of tax and payroll management, garnishment management, expense management, GL Concierge applications, and Paycom pay, as well as talent management applications, which include compensation budgeting, employee self-service, Paycom content, performance management, and executive dashboard.

In addition, Paycom Software offers human resource management applications that comprise task and document management, COBRA administration, compliance and governance, benefits to carrier/ benefits administration, personnel action surveys, forms, and affordable care act applications.

Paycom Software competes with Oracle Corporation, Cornerstone OnDemand, Inc., SAP SE, Workday, Inc., Paylocity Holding Corporation, Automatic Data Processing, Inc., Kronos Incorporated, Ceridian HCM, Inc., Intuit Inc., Concur Technologies, Inc., Paychex, Inc., and The Ultimate Software Group, Inc.

The company was founded in 1998 by Chad R. Richison. Its headquarters are located in Oklahoma City, OK. –Reuters