Paychex (NASDAQ:PAYX) Inc shares jumped after the company reported a fiscal fourth-quarter profit that matched expectations while its revenue also topped Wall Street estimates.
For the period ended May 31, 2023, Rochester, New York-based Paychex (NASDAQ:PAYX), which provides hundreds of thousands of businesses with payroll and payroll tax services, reported earnings of $350.4 million, or $0.97 per share, compared to $296.4 million, or $0.82 a share, in the same period a year earlier.
Total revenue grew 7.5% to $1.230 billion, above the FactSet consensus of $1.221 billion, on the back of $905.2 million in management solutions revenue and $299.5 million in Professional Employer Organization revenue.
Paychex also reported strong full-year fiscal 2023 revenue.
“We achieved a significant milestone of over $5 billion in total revenue. Our results for fiscal 2023 were strong with 9% growth in total revenue and 13% growth in adjusted diluted earnings per share,” Paychex CEO John Gibson said in a statement.
“These results were due to the hard work and dedication of over 16,000 employees and the investments we have made in our human capital management (HCM) technology and Human Resources (HR) advisory solutions and the trust our clients have placed in us.”
Paychex allows companies to leverage its HR technology, provides advice on complex HR issues, hire and retain talent, and secure funding such as the Employee Retention Tax Credit.
The company said it expects fiscal 2024 earnings of $4.65 to $4.70 per share on revenue of $5.31 billion to $5.36 billion. The current consensus earnings estimate is $4.61 per share on revenue of $5.31 billion for the year ending May 31, 2024.
Paychex allows companies to leverage its HR technology, provides advice on complex HR issues, hire and retain talent, and secure funding such as the Employee Retention Tax Credit.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive