Paychex shares down after 4Q results fall short
DES MOINES, Iowa (AP) â€” Shares of Paychex Inc. fell 6 percent Thursday after fourth-quarter profit and revenue results missed analyst expectations.
Deutsche Bank Securities Inc. analyst Christopher Mammone maintained a “hold” rating and a price target of $23 on the payroll and personnel services company.
Shares were down $1.61, or 6 percent, at $15.10 in morning trading.
Mammone said the company missed slightly his fiscal year expectations, missing revenue by $5 million because of weaker payroll revenue. Profit results missed his estimate by 1 cent per share. He’s concerned most about the rapid slowdown in payroll revenue and indications that any recovery could be several quarters away.