JP Morgan Tweaks Paychex Estimates

“We are tweaking our FY12 Rev/EPS estimates from $2,236M/$1.49 to $2,232M/$1.49 on slightly lower payroll growth (3.9% vs. 4.4% prior) and float income (-13% vs. -8% prior),” JP Morgan wrote in a report focusing on Paychex Inc. PAYX. “We are modestly lowering operating income excluding float from 6.7% to 6.1% due to increased amortization from acquisitions for an EPS estimate of $1.49, within the range of the implied EPS guidance of $1.48-1.51. Our FY13 Rev/EPS goes from $2,456M/$1.68 to $2,432M/$1.64. This reflects service revenue growth of 8.6% (was 9.1%) and operating income ex float growth of 9.7% (was 10.1%).” Paychex closed Thursday at $30.57.