Shares of Paycom Software (NYSE:PAYC), a provider of human resource software, have surged in 2019, rising 85% during the first half of the year, according to data provided by S&P Global Market Intelligence.
The stock's huge run-up has been fueled by a combination of a rebound from a sharp sell-off in tech stocks in the fourth quarter of 2018 and the company's strong business results reported so far this year.
Part of Paycom's rise in 2019 is undoubtedly simply a rebound following a tough fourth quarter of 2018 for high-growth tech stocks. Illustrating how tech stocks overall have rebounded this year, the tech-heavy Nasdaq Composite index rose nearly 21% during the first six months of 2019.
But Paycom's underlying business performance has helped, too. The company's fiscal fourth-quarter revenue surged 31% year over year to $150.3 million, easily beating analysts' average forecast for the period. Revenue continued to rise rapidly in the company's most recent quarter, climbing 30% year over year. Non-GAAP (adjusted) earnings per share also jumped nicely during the period, rising 24% to $1.19, beating analysts' average estimate of $1.11.
With Paycom's results in 2019 exceeding management's own guidance, it's no surprise that it raised its outlook in its most recent quarterly update. The company said it now expects full-year revenue between $718 million and $720 million, up from previous guidance for revenue between $710 million and $712 million. In addition, Paycom is guiding for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $296 million and $298 million, up from a forecast for $288 million to $290 million.