Our Thoughts: Paychex reported 4Q13 results with revenue and EPS coming in roughly in line with FY14 guidance slightly below expectations. The business appears to be on track on the whole, although still lacking a catalyst. We look to the conference call to provide more information on guidance and assumptions regarding small business growth, margin profile, competitive impact from technology based services, and any potential impact from a move in interest rates. Paychex has faced headwinds from a lack of growth on the small business front and interest rates. We maintain our NEUTRAL rating pending the development of a catalyst that will drive results above expectations.
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Joseph D. Foresi