NEW YORK (TheStreet) -- Shares of Paycom Software (PAYC) were diving 18.17% to $42.55 on heavy trading volume early Wednesday afternoon after the company reported light revenue for the 2016 third quarter.
After yesterday's closing bell, the Oklahoma City-based human capital management software solution provider posted revenue of $77.3 million, below analysts' forecasts of $76.7 million, according to FactSet.
During the period, revenue rose 40% from last year. But in the 2015 third quarter, revenue surged 51% year-over-year.
Adjusted earnings of 15 cents per diluted share topped analysts' estimates of 12 cents per share.
For the fourth quarter, Paycom sees revenue between $85 million and $87 million, while analysts are looking for $86 million.
The company forecasts full-year revenue in the range of $326.5 million to $328.5 million. Wall Street is looking for revenue of $327.7 million for 2016.
Credit Suisse upped its price target to $56 from $51 and maintained its "outperform" rating on the stock today. The firm noted that the quarterly revenue outperformance was below the company's historical pace.
"We believe the tough comparisons (e.g., +51% recurring revenue growth and +113% ANRR growth last year) are masking the continued underlying strength of PAYC's core business," Credit Suisse wrote in an analyst note.
Jefferies maintained a "buy" rating on the stock and $58 price target earlier today.
"While this wasn't the magnitude of beat that investors may have come to expect, even despite a very tough comp, it still represents hyper growth. We continue to believe that PAYC's can sustain strong execution, profitability, and outperformance," the firm wrote in a note this morning.