Paychex Beats Wall Street Estimates
Paychex is reporting earnings and profits that beat Wall Street expectations. For its third quarter, the company earned $160 million, an eleven percent increase over this time last year. Earnings per share were 44 cents, 2 cents higher than analysts predicted. Revenues of $636 million were up seven percent.
The company's chief financial officer Efrain Rivera says some of the increase is due to Paychex selling more of the human resources outsourcing services that it provides to other companies.
"The environment is getting more and more complex. As you hear in the news changes in terms of how you compensate employees, what amounts to an employee who's owed overtime, that complexity is causing and driving a demand for services."
Rivera says the complexity involved with the new Affordable Care Act has also generated interest among companies wanting those additional H-R services.
Paychex will release a new monthly index next week on how small and medium sized businesses are faring when it comes to staff levels. Rivera does indicate that the most recent quarter continues to show some growth.