Paychex sees boost in earnings and revenues in latest quarter
Paychex reported fiscal 3rd quarter results on Monday, and CEO Marty Mucci says it was a solid earnings report.
The company saw net profits of about $260 million, up 29%. The adjusted profit numbers, after one-time items, indicated earnings of $227 million, up 14% from a year ago. Earnings per share of .63 matched Wall St. estimates.
Revenues of $866 million were up 9% were the highest in six quarters, according to Mucci. They came in above the analysts' estimates.
Mucci says one factor behind the sales increase is the complexity of changes in federal and state tax and health care requirements. He says many small and medium sized businesses hire Paychex to help them deal with those changes.
“With tax reform, health care reform still out there, a lot of changes in state regulations, with minimum wage changes, and family leave act, a lot of confusion out there, particularly if you’re a multi-state employer; they’re looking to outsource and find someone to do this and help them be in compliance,” Mucci told WXXI News.
Mucci says overall, job growth across the U.S. remains strong among the types of businesses that Paychex services even if that growth has cooled off a bit over the last year.