Paycom Software shares plummet after downbeat revenue forecast

Paycom Software

01/11/2023 09:36

Nov 1 (Reuters) - Paycom Software's  PAYC.N  shares lost
over a third of their value before the bell on Wednesday, after
the payroll processor forecast a weak revenue for the fourth
quarter as economic uncertainty persists.
    The stock was last trading at $157.75 premarket, down 35.6%,
and set to open at its lowest levels since early 2019, if
current levels hold.
    The plunge would wipe out more than $5 billion off the
company's market capitalization.
    After markets closed on Tuesday, the company said it was
expecting fourth-quarter revenue in the range of $420 million to
$425 million, compared with analysts' average estimate of $452.3
million, according to LSEG data.
    "With higher uncertainty and lower visibility, we do not
have a basis to recommend shares," brokerage TD Cowen wrote in a
note, cautioning that trading in the stock would remain
range-bound as investors seek more detail on a potential
recovery.
    Paycom's competitor Ceridian HCM Holding's  CDAY.N  shares
also lost 4% in premarket trading. 
     

 (Reporting by Niket Nishant in Bengaluru; Editing by Shilpi
Majumdar)
 ((Niket.Nishant@thomsonreuters.com;))