Barclays Maintains an 'Equalweight' on Paychex (PAYX); Preview F1Q'12

Barclays maintains an 'Equalweight' on Paychex (NASDAQ: PAYX) price target lowered $2 to $30.00.

Barclays analyst says, "We expect Paychex to report generally in line F1Q'12 results tomorrow afternoon. We expect management to cite areas of progress, but to also acknowledge the continued weak economic and employment backdrop. Our F1Q'12 estimates include: F1Q'12 revenue and EPS growth of 6.7% and 4.7% y/y to $553 million and $0.38. These estimates are inline with consensus of $554 million and $0.38. We estimate segment revenues as follows: Payroll +4.8% y/y to $378 million, Human Resources +13% to $164 million, & client fund interest -12% to $10.6 million. We expect PAYX's operating margin to contract 45 bps y/y to 38.3%, or 20 bps y/y to 37.1% excluding client float interest."

For more ratings news on Paychex click here and for the rating history of Paychex click here.

Shares of Paychex closed at $26.22 yesterday.

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