Paychex, Inc. shares soared more than 3.6% on Tuesday after the company reported its latest financial results. During the first quarter, the company’s revenue jumped 4% to $816.8 million – missing consensus estimates by $3.87 million – while net income of 62 cents per share beat consensus estimates by two cents per share. Payroll service revenue jumped 2%, while human resource services revenue increased 7% for the quarter.
Last month, Paychex announced the acquisition of HR Outsourced Holdings, which has been in business since 2001 and currently has about 140 employees. Analysts had been largely silent on the acquisition, but Citi said earlier this week that Paychex shares were overvalued. Citi analysts believe that Paychex continues to face tough comps and continued regulatory uncertainty, and the firm maintains its Sell rating and $53.00 price target on Paychex stock. (See also: ADP vs. Paychex: Which Is Better for My Portfolio?)
Paychex shares soared after first quarter earnings, but traders appeared indecisive by the end of Tuesday’s session. …read more
Read more here: Paychex Stock Moves Higher, Ends Day Uncertain