Paycom Software Earnings: PAYC Stock Falls 6% on Q2 Revenue Miss

Paycom Software (NYSE:PAYC) earnings for the software company’s second quarter of 2020 have PAYC stock falling after-hours Tuesday. That comes after reporting adjusted earnings per share of 62 cents, which matches Wall Street’s estimate. Unfortunately, its revenue of $181.59 million is below analysts’ estimate of $183.88 million.

Paycom Software (PAYC) app in App Store

Source: STEFANY LUNA DE LINZY / Shutterstock.com

Here’s what else is worth mentioning from the most recent Paycom Software earnings report.

  • Adjusted per-share earnings are down 17.3% from 75 cents during the same time last year.
  • Revenue for the quarter comes in 7% higher than the $169.31 million reported in the second quarter of 2019.
  • Operating income of $26.58 million is a 49.7% drop year-over-year from $52.89 million.
  • The Paycom Software earnings report also includes a net income of $28.59 million.
  • That’s a 41.4% decline compared to the company’s net income of $48.76 million in the same period of the year prior.

Chad Richison, founder and CEO of Paycom Software, said this about the earnings results.

“The second quarter was very strong from a new business perspective, which positions Paycom very well to deliver long-term revenue growth and market share gains. We are executing well in these challenging times and demand for our solutions has never been greater.”

Paycom Software provides guidance for the upcoming quarter in its earnings report. It expects revenue to range from $191 million to $193 million. That’s not bad compared to Wall Street’s estimate of $191.37 million for Q3 2020.

PAYC stock was down 5.7% after markets closed on Tuesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/08/paycom-software-earnings-hit-payc-stock/.

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