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.