Paychex Stock Drops After Mixed Q2 Performance - What's Going On?
Portfolio Pulse from Anusuya Lahiri
Paychex Inc (NASDAQ:PAYX) reported a mixed Q2 FY24 with sales growth of 6% to $1.26 billion, missing the consensus estimate of $1.27 billion. Adjusted EPS of $1.08 slightly beat the estimate of $1.07. SG&A expenses rose 8%, while operating income grew 7% with a margin expansion. The company has $1.4 billion in cash and revised its FY24 adjusted EPS growth outlook to 10%-11%. Shares fell by 5.70% to $120.58.
December 21, 2023 | 3:20 pm
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NEGATIVE IMPACT
Paychex reported mixed Q2 results with a sales miss and a marginal EPS beat, increased SG&A expenses, and raised FY24 EPS outlook. Stock price dropped by 5.70%.
The stock price decline indicates a negative investor reaction to the mixed earnings report, with concerns over the sales miss and increased expenses likely outweighing the slight EPS beat and raised EPS outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100