Payroll and human resources services provider Paychex, Inc. (PAYX) late Wednesday posted third quarter earnings results that met analysts’ outlook.
The Rochester, NY-based company reported fiscal third quarter net income of $135.4 million, or 37 cents per share, compared with $130.6 million, or 36 cents per share, in the year-ago period.
Revenue rose 7% from last year to $569.5 million.
On average, Wall Street analysts expected a matching profit of 37 cents per share, on slightly lower revenue of $568.3 million.
Looking ahead, the company said it still expects 2012 earnings to rise between 5% and 7% from last year. That range implies $540 million to $550 million, while analysts are looking for $550 million for the full year.
Paychex shares posted modest gains in premarket trading Thursday.
The Bottom Line
Shares of Paychex (PAYX) have a 4.00% dividend yield, based on last night’s closing stock price of $31.98. The stock has technical support in the $29-$30 price area. If the shares can firm up, we see overhead resistance around the $33-$34 price levels.
Paychex, Inc. (PAYX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.