Paychex earnings top expectations
Rochester-based Paychex is reporting strong profit and revenue growth in its just completed 4th quarter and for the fiscal year overall.
The company saw net income of just over $296-million in the company’s fiscal 4th quarter, a 13% from this time last year. Revenues of $1.14 billion for the quarter were up 11% over last year.
The earnings and sales topped analysts’ expectations.
Company CEO Marty Mucci told WXXI News that the human resource services that Paychex provides were a big reason for the revenue growth.
“The fastest grower is (HR service), it’s a tough time with hiring and moving people around and engaging your team, and so the HR advice is the fastest growing piece, right after retirement, retirement growing very fast as well,” Mucci said.
The CEO also noted that among the small companies that his firm provides services to, they are still hiring, even if it’s not at the same pace it was some months ago.
“We saw small business growth slowing a bit, but still growth,” said Mucci. “And we have not seen any real signs of the recession. We’re still seeing new business startups. We’re still seeing people hiring employees, not laying off. So we’re not seeing the signs of a recession at this point.”
In terms of which sectors of the economy are still trying to add jobs, Mucci said that businesses in the leisure and hospitality industry are still among those employers aggressively looking for people, but are having difficulty finding enough employees.