Paychex: In-line quarter and guidance; customer growth improves - Oppenheimer
Oppenheimer notes PAYX reported a mixed 4Q14 and FY15 guide. EPS of $0.40 compared to our/Street $0.39/$0.40 estimates, while the FY15 EPS guide brackets our/Street expectations. Services revenue growth of 6% Y/Y was consistent with thier est. PAYX provided FY15 Services revenue and net income guidance of 8-10% (reflects 2 pts benefit from change in HRS reporting going forward) and 6-8% (implies $1.83 at mid-point), respectively. They await mgmt commentary on the sales environment heading into FY15. PAYX appears fairly valued, in their view, at ~23x their CY14E.