Payroll outsourcing company Paychex, Inc. (PAYX) said Thursday that its second-quarter profit rose 10% from last year, helped by higher revenue and lower expenses.
The Rochester, New York-based company reported fiscal second-quarter net income of $125.9 million U.S., or 35 cents U.S. per share, compared with $140.2 million U.S., or 39 cents U.S. per share, in the year-ago period.
Revenue fell 5% from last year, to $496.6 million U.S.
On average, Wall Street analysts expected a smaller profit of 33 cents U.S per share, on slightly lower revenue of $496.4 million U.S.
Paychex shares rose 76 cents U.S., or 2.4%, in premarket trading Thursday.
The Bottom Line
The company has a 3.94% dividend yield, based on last night’s closing stock price of $31.50 U.S. The stock has technical support in the $28 U.S. price area. If the shares can firm up, there could well be overhead resistance around the $33-$35 U.S. price levels. Experts would remain on the sidelines for now.
Paychex, Inc. (PAYX) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
