) following F2Q11 results. Headline numbers were ahead of expectations with continued improvement in key payroll metrics. “Management increased FY11 guidance on positive improvements in metrics and a strong 1H, but noted surprises to their current view were unlikely and expect a tougher 2H due to investments and timing,” J.P. Morgan writes.” “We modify our FY11 Rev/EPS estimates from $2,070M/$1.39 to $2,075M/$1.42. We increase our FY11 payroll revenue growth from 1.0% to 1.5% (guidance of 1-2% growth) and our HR services revenue growth from 11.6% to 11.0% (guidance of 10-13% growth).” J.P. Morgan is also raising operating income excluding float growth from 4.4% to 6.6% on the 2Q margin upside, adding, “Our new EPS estimate of $1.42 (3.3% growth y/y) is on the low end of the implied EPS guidance of $1.42-$1.45 (previously “slightly up”).” Further, J.P. Morgan is tweaking its FY12 Rev/EPS from $2,220M/$1.50 to $2,223M/$1.50. Paychex currently trades at $31.13.