WXXI AM News

Paychex's latest quarter tops Wall St. estimates

Oct 3, 2019

Paychex is reporting earnings and revenues that topped analysts’ estimates.

For its fiscal 1st quarter, the Rochester based payroll company reported a 9% increase in operating income to just over $349 million, and a 15% increase in revenue to $992 million. Revenue was helped by the acquisition of the Oasis Outsourcing Group last December.

But even with the acquisition, CEO Marty Mucci tells WXXI News that it was a “great quarter” for the company. He says the human resources services that Paychex provides to clients continues to be a big revenue driver.

“We did have good growth kind of across the board, but HR is certainly becoming a bigger portion of our business and HR outsourcing is what our clients need ….50 percent of our business, our revenue, is non-payroll these days, a big switch for us,” Mucci said.

Paychex stock was up 25.7% year to date through Tuesday.  On Wednesday, the stock was up nearly 2%, closing at $83.35.