Jim Cramer on Paychex: "I Devour the Report Every Quarter"

Paychex, Inc. (NASDAQ:PAYX) is one of the stocks Jim Cramer shared his take on. Cramer said that the company’s earnings will reveal the state of the economy, as he remarked:

“Tuesday morning, we hear from a company I think that tells you more about the state of the economy than almost any other, and that is Paychex, which you’re quite familiar with if you watch the show, payroll processor and human resources company for millions of small and medium-sized businesses, proverbial backbone of America. Now, it’s not as important as the non-farm payroll numbers Friday, but I think Paychex tells you, it tells you it straight. I devour the report every quarter.”

Paychex, Inc. (NASDAQ:PAYX) provides human capital management solutions for small and medium-sized businesses, covering payroll, HR, benefits, retirement, and insurance services. The company’s offerings include workforce management, compliance, financial wellness tools, and risk management solutions. Cramer mentioned the company during a June episode and said:

“What the heck happened to the stock of Paychex today? Payroll processor and outsource human capital management company that cuts one out of every 11 paychecks in the private sector. This morning, Paychex reported what the Street thought to be a mixed quarter. In-line earnings paired with oh-so slightly lower than expected revenue, which would’ve been fine but… people thought that maybe their full year forecast for revenue, little light…

On the other hand, the earnings forecast was fantastic. It seems crazy to me that the stock plunged 9% today in response to those numbers, making it the worst-performing in the S&P 500. I mean, some of this disturbance might be because the company recently closed on a $4.1 billion acquisition of Paycor, a company, you know I like very much, and maybe that makes their financials a little harder to understand today. 9% still feels excessive to me.”

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