logo
  Join        Login             Stock Quote

Paychex (PAYX) Q2 Earnings In-Line, Revenue Misses

 December 19, 2012 04:17 PM
 


(By Balaseshan) Paychex Inc. (NASDAQ: PAYX) reported a 5% increase in quarterly earnings helped by a double-digit growth in human resources services revenue and a moderate increase in new payroll sales. Revenue missed consensus, while earnings came in-line with Street's expectations.

Earnings for the second quarter were $147.9 million or $0.41 per share, up from $140.4 million or $0.39 per share last year.

Revenue increased 4% to $569.4 million.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.41 per share on revenue of $573.03 million for the second quarter.

Payroll service revenue rose 1% to $377.0 million. Checks per payroll increased 1.2%. Revenue per check grew modestly, impacted by price increases, partially offset by discounting. Growth in payroll service revenue was tempered by lost revenue from Hurricane Sandy, approximating 0.5% of payroll revenue growth, and the impact of client mix in the mid-market.

[Related -Automatic Data Processing Inc. (ADP) Dividend Stock Analysis]

Human resource services revenue grew 12% to $182.4 million. Paychex HR Solutions revenue was positively impacted by price increases and growth in both clients and client employees. Retirement services revenue was positively impacted by client growth and an increase in the average asset value of retirement services client employees' funds.

Interest on funds held for clients decreased 8% to $10.0 million, due to lower average interest rates earned, offset by a 4% increase in average investment balances.

[Related -Manpower Group, Inc. (MAN): 53% Gain On Jobs And Emerging Markets]

Looking ahead into the fiscal 2013, the company still expects earnings to increase 5% to 7% and service revenue growth of 5% to 6%. Street analysts expect earnings per share to increase 6% from last year on revenue growth of 4.90%.

Interest on funds held for clients and investment income for fiscal 2013 are expected to continue to be impacted by the low interest rate environment, the company said.

PAYX closed Wednesday's regular session down 0.33% at $33.05. The stock has been trading between $28.76 and $34.70 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageHow the Chinese Slowdown Will Impact Your Investments

Most countries would find a quarterly growth rate of 7.3% a cause for a read on...

article imageHow To Profit From Foreign Investment In Real Estate

Though investors don't always capitalize on it, history has a way of repeating itself. In fact, when I saw read on...

article imageAnother Round Of Upbeat US Macro Reports

The US economy grew faster than expected in this year’s third quarter, according to this morning’s read on...

article imageDistinguishing The Fed's Securities Purchases From Monetary Expansion

There has been a bit of confusion about what today's FOMC announcement means with respect to Quantitative read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.