Diamonds and Dogs
Paychex (PAYX) paying off for shareholders. The Rochester, NY payroll processor is up nearly 3% to a new all-time high following better than expected earnings. Paychex beat earnings by a penny as revenue rose 8.8% year over year to $862.8 million. Paychex typically outperforms in a strong economy with rising interest rates. With the recent stock appreciation, Paychex has almost caught another Upstate New York firm, Corning in terms of company market cap.
Stitch Fix (SFIX) needs a fix. The online clothing and delivery retailer is down 34% following earnings. Earnings actually beat estimates pretty easily with inline sales. But Stitch Fix's closely-watched active client count (It effectively encompasses customers who have been active during the preceding 12 months ) came in at 2.74 million. That's up 25% from a year ago, but just 2% higher sequentially and below a 2.82 million consensus estimate. Stitch Fix came public in November last year and is up 100% since then, but down 33% today is not a good day.