Paychex First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Paychex, Inc. (NASDAQ:PAYX) will unveil its latest earnings on Tuesday, September 27, 2011. Paychex, Inc. is a provider of comprehensive payroll, human resource, and benefits outsourcing solutions for small and medium sized businesses.

Paychex, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 38 cents per share, a rise of 5.6% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting profit of $1.50 per share, a rise of 5.6% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported net income of 33 cents per share versus a mean estimate of profit of 33 cents per share. In the third quarter of the last fiscal year, the company beat estimates by one cent.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Wall St. Revenue Expectations: On average, analysts predict $554.1 million in revenue this quarter, a rise of 6.9% from the year ago quarter. Analysts are forecasting total revenue of $2.23 billion for the year, a rise of 7.2% from last year’s revenue of $2.08 billion.

Analyst Ratings: Analysts seem relatively indifferent about Paychex with 13 of 18 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 2.9% while it rose 16.6% in the third quarter of the last fiscal year and 6.4% in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 5.8% to $510.4 million in fourth quarter of the last fiscal year. The figure rose 5.2% in the third quarter of the last fiscal year from the year earlier, climbed 3.5% in the second quarter of the last fiscal year from the year-ago quarter and 4.1% in the first quarter of the last fiscal year.

Competitors to Watch: Automatic Data Processing (NASDAQ:ADP), CBIZ, Inc. (NYSE:CBZ), Equifax Inc. (NYSE:EFX), Insperity Inc (NSP), Dalrada Financial Corp. (DFCO), McMillan Shakespeare Ltd. (NYSE:MMS), Blue Tax Group SA (NYSE:BTG), Hilan Tech Ltd. (HLTC), and Colliers SA Holdings Ltd. (NYSE:COL).

Stock Price Performance: During June 27, 2011 to September 21, 2011, the stock price had fallen $3.42 (-11.5%) from $29.80 to $26.38. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 8, 2011 when shares rose for eight-straight days, rising 5.4% (+$1.68) over that span. It saw one of its worst periods between July 22, 2011 and August 2, 2011 when shares fell for eight-straight days, falling 9.5% (-$2.82) over that span. Shares are down $3.63 (-12.1%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.