Paycom Software (PAYC) Stock Soars on Earnings Beat

Paycom Software (PAYC) stock is climbing after the company reported financial results that surpassed estimates for the 2015 third quarter.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Paycom Software (PAYC) - Get Report stock is advancing by 14.56% to $44.85 on heavy trading volume on Wednesday morning, after the company reported better than expected financial results for the third quarter of 2015.

After the market close on Tuesday, the payroll and human resources software company posted earnings of 8 cents per share for the quarter ended September 30, beating estimates by 1 cent.

Revenue increased by 51% year-over-year to $55.34 million, surpassing estimates of $51.49 million.

"Paycom experienced continued strong demand in the third quarter," said Chad Richison, Paycom founder and CEO. "Our solution continued to gain traction in the marketplace in the third quarter, and drove record revenue growth of 51% from the comparable prior year period, our strongest ever as a public company."

Paycom Software increased its full year revenue guidance to $219 million to $221 million, from the previous outlook of $210 million to $212 million.

So far today, 2.72 million shares of Paycom Software have exchanged hands, compared its average daily volume of 750,869 shares.

Separately, TheStreet Ratings team rates PAYCOM SOFTWARE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

We rate PAYCOM SOFTWARE INC (PAYC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including premium valuation and generally higher debt management risk.

You can view the full analysis from the report here: PAYC

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