Paycom Software tumbles on weak Q4 forecast, PT cuts

Paycom Software

01/11/2023 09:58

** Shares of payroll processor Paycom Software  PAYC.N  down
37.3% at $153.54 premarket 
    ** Co on Tuesday said it sees Q4 revenue between $420
million and $425 million vs analysts' estimates of $452.3
million - LSEG
    ** Posts Q3 revenue of $406.3 million vs estimates of $411.2
million
    ** Net income was $1.30 per share vs 90 cents per share a
year ago
    ** At least four cut PT on PAYC post results
    ** With higher uncertainty and lower visibility, we do not
have a basis to recommend shares - brokerage TD Cowen
    ** Paycom's competitor Ceridian HCM Holding  CDAY.N  is also
down 2.4% in premarket trading; Automatic Data Processing
 ADP.O  down ~2% premarket
    ** Up to last close, PAYC stock had fallen 21% YTD
 Brokerages     New PT  Old PT
 TD Cowen       $202    $331
 Piper Sandler  $185    $399
 Barclays       $200    $294
 J.P.Morgan     $140    $330
 
 (Reporting by Pritam Biswas in Bengaluru)
 ((Pritam.Biswas@thomsonreuters.com))