Friday, March 30, 2012

Investopedia: Is Paychex A Small Business Annuity?

Slowly and maybe not entirely surely, business conditions are getting better. That's good news for Paychex (Nasdaq:PAYX), as this company needs a healthy small business environment to continue it growth plans. While results are decent and there are still growth opportunities for the company, oncoming competition and international expansion both look like increasingly relevant factors.

Decent Q3 Results
Paychex reported that revenue rose 7% for the fiscal third quarter, with organic revenue growth of 5%. Payroll services revenue grew 5% (4% organically) as checks-per-client rose almost 2%. HR services rose 12% (10% organic), and the company continues to see good growth in services like employee health and benefits. Earnings from the interest carry continue to be limited by the low rate environment, as the average interest rate fell 30 basis points and interest from client funds declined 7%.

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/Is-Paychex-A-Small-Business-Annuity-PAYX-ADP-INTU-BAC0330.aspx

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