Paycom Sees Q4 Revenue at $542.9M, EPS Forecast $2.45 as Shares Fall
Paycom posted Q3 revenue of $493.3 million, up 9.2% year over year, narrowly beating EBITDA estimates as billings met expectations. For Q4, analysts project $542.9 million in revenue (10% growth) and $2.45 adjusted EPS, while shares have slid 18.7% over the past month against a $197.18 average price target.
1. Third-Quarter Performance
In Q3 Paycom reported $493.3 million in revenue, marking a 9.2% year-over-year increase. The company narrowly beat analysts’ EBITDA estimates while delivering billings in line with projections.
2. Fourth-Quarter Outlook
Analysts forecast Q4 revenue of $542.9 million, representing 10% year-over-year growth, and adjusted earnings of $2.45 per share. This expected growth rate slows from the 13.6% rise recorded in the same quarter last year.
3. Historical Earnings Trends
Over the past two years, Paycom has beaten revenue estimates every quarter by an average of 1.4%, reflecting a consistent trend of modest upside against Wall Street forecasts.
4. Peer Comparisons and Share Movement
Peer Paylocity grew revenue 10.4%, beating estimates by 1.9% while its stock fell 7.2%, and Bill.com delivered 14.4% revenue growth, topping forecasts by 3.7% with shares up 37.7%. The finance and HR software sector is down 17.9% this month, with Paycom shares off 18.7% versus an average $197.18 price target.