Insights

2 Hot Stocks Soaring After Hours

Stocks had another positive day on Tuesday, with the market overcoming some brief dips into negative territory. All eyes are on the Federal Reserve, which began a two-day meeting to determine the likely course of monetary policy and short-term interest rates. By the end of the day, the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were all up, with gains of as much as half a percent.

Index

Daily Percentage Change

Daily Point Change

Dow

+0.20%

+67

S&P 500

+0.48%

+20

Nasdaq

+0.22%

+28

Data source: Yahoo! Finance.
After the regular session ended, a couple of companies announced financial results that shareholders found extremely encouraging. Below, we’ll look more closely at why Livent (NYSE: LTHM) and Paycom Software (NYSE: PAYC) got such favorable reactions in their share prices after the closing bell.
Image source: Getty Images.

1. Livent looks lively
Shares of Livent were big winners in after-hours trading, rising 19% late Tuesday. The lithium producer  has benefited greatly from increased demand from manufacturers of batteries for electric vehicles, and the favorable conditions look likely to continue for the foreseeable future.
Livent’s first-quarter results showed extremely strong momentum for the business. Revenue of $143.5 million was up 56% from year-ago levels. Net income rose sevenfold year over year, and even after accounting for extraordinary items, adjusted earnings of $0.21 per share came in well above what most investors had expected to see.
Livent reported high customer demand and rapidly increasing lithium prices amid tight market conditions, which helped boost the amount that the company was able to realize from sales of its production. Yet Livent hasn’t had any trouble delivering on its supply commitments, and it’s still planning to boost capacity to meet anticipated increases in demand as the transition from internal combustion to electric vehicles continues.
Based on favorable markets, Livent pushed its guidance for fiscal 2022 much higher, now expecting revenue of $755 million to $835 million for the year. That would be 89% higher than 2021’s final figures, and it shows that the lithium market is just getting started in its explosive moves higher.
2. Paycom pays off
Shares of Paycom Software also gained ground. The cloud-based human capital management platform provider’s first-quarter financial results helped send the stock up 8% in  after-hours trading.
Paycom’s numbers were strong. Revenue of $354 million was up 30% year over year. Adjusted net income climbed 29% to $110.6 million, and that produced adjusted earnings of $1.90 per share. Both sets of numbers reflected increased usage of the Paycom platform by its clients’ employees.
In particular, CEO Chad Richison pointed to the value of the company’s strategy in fostering greater adoption of the software. With labor markets tightening, the value of self-service solutions and automation in the platform has never been higher, and businesses are increasingly relying on Paycom’s features to bolster their own productivity.
Paycom expects full-year revenue of $1.333 billion to $1.335 billion, which would work out to roughly 26% sales growth from 2021’s final numbers. That’s not lightning-fast growth, but with the stock having fallen by half from its highs, shareholders seem ready to accept that pace of sales gains as acceptable.
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Paycom Software. The Motley Fool has a disclosure policy. –

Stocks had another positive day on Tuesday, with the market overcoming some brief dips into negative territory. All eyes are on the Federal Reserve, which began a two-day meeting to determine the likely course of monetary policy and short-term interest rates. By the end of the day, the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were all up, with gains of as much as half a percent.

Index

Daily Percentage Change

Daily Point Change

Dow

+0.20%

+67

S&P 500

+0.48%

+20

Nasdaq

+0.22%

+28

Data source: Yahoo! Finance.

After the regular session ended, a couple of companies announced financial results that shareholders found extremely encouraging. Below, we’ll look more closely at why Livent (NYSE: LTHM) and Paycom Software (NYSE: PAYC) got such favorable reactions in their share prices after the closing bell.

Image source: Getty Images.

1. Livent looks lively

Shares of Livent were big winners in after-hours trading, rising 19% late Tuesday. The lithium producer  has benefited greatly from increased demand from manufacturers of batteries for electric vehicles, and the favorable conditions look likely to continue for the foreseeable future.

Livent’s first-quarter results showed extremely strong momentum for the business. Revenue of $143.5 million was up 56% from year-ago levels. Net income rose sevenfold year over year, and even after accounting for extraordinary items, adjusted earnings of $0.21 per share came in well above what most investors had expected to see.

Livent reported high customer demand and rapidly increasing lithium prices amid tight market conditions, which helped boost the amount that the company was able to realize from sales of its production. Yet Livent hasn’t had any trouble delivering on its supply commitments, and it’s still planning to boost capacity to meet anticipated increases in demand as the transition from internal combustion to electric vehicles continues.

Based on favorable markets, Livent pushed its guidance for fiscal 2022 much higher, now expecting revenue of $755 million to $835 million for the year. That would be 89% higher than 2021’s final figures, and it shows that the lithium market is just getting started in its explosive moves higher.

2. Paycom pays off

Shares of Paycom Software also gained ground. The cloud-based human capital management platform provider’s first-quarter financial results helped send the stock up 8% in  after-hours trading.

Paycom’s numbers were strong. Revenue of $354 million was up 30% year over year. Adjusted net income climbed 29% to $110.6 million, and that produced adjusted earnings of $1.90 per share. Both sets of numbers reflected increased usage of the Paycom platform by its clients’ employees.

In particular, CEO Chad Richison pointed to the value of the company’s strategy in fostering greater adoption of the software. With labor markets tightening, the value of self-service solutions and automation in the platform has never been higher, and businesses are increasingly relying on Paycom’s features to bolster their own productivity.

Paycom expects full-year revenue of $1.333 billion to $1.335 billion, which would work out to roughly 26% sales growth from 2021’s final numbers. That’s not lightning-fast growth, but with the stock having fallen by half from its highs, shareholders seem ready to accept that pace of sales gains as acceptable.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Paycom Software. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!