Friday, November 2, 2012

PAYX Slips on FYQ4 Rev Miss; Year View Light

Shares of payroll processing firm Paychex (PAYX) are down 17 cents, or half a percent, at $31.76 in late trading after the company this afternoon reported fiscal Q4 revenue slightly below analysts’ estimates while meeting consensus on the bottom line.

Revenue in the three months ended in May rose 6%, year over year, to $551 million, yielding 34 cents in profit per share.

Analysts had been modeling $557.6 million and 34 cents.

For this year, the company sees payroll revenue rising from 3% to 4% from last year’s level. That projection is slightly light compared to the average Street estimate for 4.5% payroll revenue growth this year, according to data from FactSet.

The company said the outlook was based upon “anticipated client base growth, offset by an expected lower rate of growth in checks per payroll, and modest increases in revenue per check.”

Shares of Paychex competitor Automatic Data Processing (ADP) are up a penny at $54.49.

No comments:

Post a Comment