Markets

Financial Sector Update for 06/28/2017: PAYX,MBI,EZPW

Top Financial Stocks

JPM +2.25%

BAC +2.75%

WFC +2.28%

C +1.50%

USB +1.73%

Financial stocks were finishing near the top of their Wednesday trading range, with the NYSE Financial Sector Index increasing over 1.6% while financial companies in the S&P 500 Index raced to a nearly 1.4% advance.

In company news, payroll processor Paychex ( PAYX ) declined Wednesday, falling as much as 3.5% to a session low of $56.56 a share earlier today after this morning projecting FY18 adjusted earnings and revenue trailing Wall Street estimates, upstaging better-than-expected Q4 financial results.

Looking forward to the 12 months ending next May, the company sees non-GAAP per-share earning rising between 7% to 8% over FY17 levels to $2.35 to $2.38, lagging the Capital IQ consensus by at least $0.04 per share. It also is expecting a 5% year-over-year increase in revenue to around $3.31 billion, also missing the analyst mean by at least $40 million.

Excluding one-time items, the company earned $0.54 per share during the three months ended May 31, improving on $0.49 per share during the same quarter last year period and topping the Capital IQ consensus by $0.01 per share. Revenue grew 6% compared with year-ago levels to $798.6 million, beating the $797.7 million Street view.

In other sector news,

(+) MBI, Authorizes new, $250 mln stock buyback program to replace the company's February 2016 program that has only $13 mln still available for share repurchases.

(-) EZPW, Begins $125 private placement of convertible senior notes due 2024. Net proceeds will be used to repay debt owed under the company's senior secured credit facility. Also discloses a non-binding letter of intent to acquire various pawn shops in Latin America.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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