Payroll and personnel services provider Paychex Inc. said Wednesday its profit fell 10 percent in the second quarter as it processed a smaller number of paychecks due to the high level of unemployment.
Paychex reiterated that its 2010 profit will fall by 10 percent to 12 percent, implying net income would range from $469.5 million to $480.2 million. In 2009, the company reported earning $533.5 million, or $1.48 per share.
CEO Jonathan Judge said the tough economic conditions have dragged down results compared with last year.
In the quarter that ended Nov. 30, the company earned $125.9 million, or 35 cents per share. That beat a 33-cents-per-share profit estimate of analysts polled by Thomson Reuters. A year earlier, the company earned $140.2 million, or 39 cents per share, during the period.
Revenue fell 5 percent to $496.6 million from $524.2 million, in line with the $496.4 million analysts had expected.
Shares of Paychex, based in Rochester, N.Y., fell 32 cents to close at $31.50 on Wednesday.