Payroll and human resources services provider Paychex, Inc. ( PAYX ) late Tuesday posted slightly better-than-expected fiscal second quarter earnings, although revenue totals fell short of Wall Street's view.
The Rochester, NY-based company reported fiscal second quarter net income of $140.4 million, or 39 cents per share, compared with $133.9 million, or 37 cents per share, in the year-ago period.
Revenue rose 7% from last year to $545.7 million.
On average, Wall Street analysts expected a smaller profit of 38 cents per share, albeit on higher revenue of $551 million.
Looking ahead, PAYX reiterated its previously-announced full-year 2012 earnings growth of 5% to 7% over 2011. That guidance could miss, meet, or even exceed analyst estimates.
Paychex shares were unchanged in premarket trading Wednesday.
The Bottom Line
Shares of Paychex ( PAYX ) have a 4.23% dividend yield, based on last night's closing stock price of $30.24. The stock has technical support in the $27 price area. If the shares can firm up, we see overhead resistance around the $31-$32 price levels.
Paychex, Inc. ( PAYX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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