Paycom Software (PAYC) Tops Q3 Earnings and Revenue Estimates

Core Viewpoint - Paycom Software (PAYC) reported quarterly earnings of $1.67 per share, exceeding the Zacks Consensus Estimate of $1.62 per share, but down from $1.77 per share a year ago, indicating a 5.65% year-over-year decline in earnings [1][2] Financial Performance - The company achieved revenues of $451.93 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.14% and reflecting a year-over-year increase from $406.3 million [2] - Over the last four quarters, Paycom has consistently exceeded consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Paycom shares have declined approximately 19% since the beginning of the year, contrasting with the S&P 500's gain of 22.3% [3] - The current consensus EPS estimate for the upcoming quarter is $1.96 on revenues of $482.33 million, and for the current fiscal year, it is $7.79 on revenues of $1.87 billion [7] Industry Context - The Internet - Software industry, to which Paycom belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Paycom's stock performance [5][6]