Oppenheimer Comments On Paychex 4Q Results

According to Oppenheimer, Paychex PAYX 4Q:FY11 EPS rose 3% Y/Y and were in line with the $0.33 estimate. Oppenheimer said that better than expected revenue and margins were offset by a higher than expected tax rate. “Checks/client remained positive, while net clients on an organic basis fell -0.9% Y/Y (reported clients, including acquisition, rose 5.2% Y/Y) for the year. New sales remain challenged and were about flat Y/Y in FY11. FY12 guidance is mixed as the mid-point of revenue exceeds our estimate by ~$75M, adjusted margin guidance is ~60bp to 160bp below our estimate and implied EPS are $1.49-1.51 (vs. our/Street estimate of $1.48/1.51).” Paychex closed yesterday at $29.71.