Jim Cramer Notes “Paychex Tends to Sell off on Earnings”

Paychex, Inc. (NASDAQ:PAYX) is one of the stocks that was on Jim Cramer’s radar. Cramer noted the company’s earnings and analyst sentiment toward it. The Mad Money host stated:

“If you want to get a real read on employment, I always like to check in with Paychex. That’s the payroll processor and outsourced human resources play, mainly serves small and medium-sized businesses. This morning, Paychex reported a modest top and bottom-line beat, management raising the midpoint of the full-year earnings forecast for the second quarter in a row. So far, so good.

But when some of these analysts dug down, they saw things they didn’t like. The company’s management solutions business narrowly missed its revenue estimates. They said that full-year revenue outlook could come in closer to the low end of their previous forecast. I wouldn’t be sure about that, but that is why the stock got hit today. Although then again, Paychex tends to sell off on earnings even when the quarter’s pristine.”

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Paychex, Inc. (NASDAQ:PAYX) provides human capital management solutions, including payroll processing, payroll tax and compliance, HR administration, benefits, and workforce management for small to mid-sized businesses.

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Disclosure: None. This article is originally published at Insider Monkey.