Paychex tops earnings estimates
Paychex, Inc. is reporting fiscal first quarter results which saw increases in profits and sales.
The Rochester-area based company says the adjusted net income of nearly $223 million was up 9% compared to a year ago, and earnings per share of .62 topped analysts’ estimates by 2 cents.
Revenues of nearly $817 million were up 4% compared to a year ago, and the company also raised some revenue estimates.
President & CEO Marty Mucci says that the company saw solid growth in various product lines, particularly its human resource outsourcing solutions and cloud-based time and attendance products.
Mucci says Paychex continues to generate more revenue by providing outsourcing services to a lot of small and medium sized companies.
“A lot of it driven frankly by state regulations which are increasing even faster than federal regulations, so our clients and even small or mid-market clients are having a tough time keeping up with overtime changes, minimum wage, and family leave act that are changing across the country," Mucci told WXXI News.
In August, Paychex announced it would be adding more than 600 jobs over the next five years as part of its expansion in Henrietta.
Paychex shares on Tuesday gained 3.6 percent, up $2.18 to close at $61.99.