Top Financial Stocks
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.
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