Ultimate Software stock price rises

WESTON Westonbased Ultimate Software’s stock has been on the rise as the human resources software company is taking market share from the payroll giants, Wall Street analysts say.

On Tuesday, before earnings were announced, Ultimate’s stock price rose more than 3 percent in Nasdaq trading. On Wednesday, as earnings were released at the market’s close, Ultimate rose 53 cents or 0.26 percent to $203.12 a share.

That’s because Ultimate didn’t disappoint during its third quarter, beating analysts’ forecasts. Revenue rose 20 percent over a year ago to $236.1 million and recurring revenue increased 22 percent to $203.1 million.

Net income for the quarter was $4.7 million compared with $4.76 million a year ago. But excluding Ultimate’s $38 million in stock-based compensation, quarterly net income was $32.4 million, or $1.05 a share, the company said. That compares with $23.7 million, or 78 cents a share in the same quarter in 2016.

Founder and CEO Scott Scherr said in a news release that the company met its financial objectives for the quarter. He also noted that Ultimate Software was named the No. 2 Best Workplace for Women by Fortune magazine, and that the company had secured a multiyear partnership with the National Basketball Association’s Miami Heat franchise to put Ultimate’s logo on Heat jerseys, part of a community outreach program.

On a conference call with Wall Street analysts on Wednesday, Scherr said the Heat partnership increased the company’s media reach, as it was featured in 274 stories, including in USA Today. Scherr said Ultimate