Paychex, Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Paychex, Inc. (NASDAQ:PAYX) will unveil its latest earnings on Wednesday, June 22, 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 analyst is estimating profit of 33 cents per share, a rise of 3.1% from the same quarter a year ago. Estimates range from net income of 31 cents per share to profit of 34 cents per share. The consensus estimate is the same as three months ago. For the year, analysts are projecting net income of $1.42 per share, a rise of 5.2% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 36 cents per share against a mean estimate of net income of 35 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $515.9 million in revenue this quarter, a rise of 4% from the year ago quarter. Analysts are forecasting total revenue of $2.08 billion for the year, from last year’s revenue of $2 billion.

Analyst Ratings: Analysts seem relatively indifferent about Paychex, with 14 of 21 analysts surveyed maintaining a hold rating. While the average rating for the stock remains a hold, the strength of the rating has dwindled over the past three months.

Key Stats:

The company has now seen net income rise in three-straight quarters. In the third quarter of the last fiscal year, net income rose 16.6% while it rose 6.4% in the second quarter and 6.7% in the first quarter.

Revenue has risen the past four quarters. Revenue increased 5.2% to $519.6 million in third quarter of the last fiscal year. The figure rose 3.5% in the second quarter from the year earlier, climbed 4.1% in the first quarter from the year-ago quarter and 0.3% in the fourth quarter of the last fiscal year.

Competitors to Watch: Automatic Data Processing (NASDAQ:ADP), CBIZ, Inc. (NYSE:CBZ), Equifax Inc. (NYSE:EFX), McMillan Shakespeare Ltd. (NYSE:MMS), Blue Tax Group SA (NYSE:BTG) and Colliers SA Holdings Ltd. (NYSE:COL).

Stock Performance: The stock price saw one of its best stretches over the last year between January 31, 2011 and February 8, 2011 when shares rose for seven-straight days, rising 4.4% (+$1.40) over that span. It saw one of its worst periods between June 16, 2010 and June 25, 2010 when shares fell for eight-straight days, falling 8.2% (-$2.27) over that span.

(Source: Xignite Financials)

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