Paychex Quarterly Profit Rises
September 28 2016 - 10:10AM
Dow Jones News
Paychex Inc. on Wednesday said its quarterly earnings rose 4% as
the company continued to add more clients and revenue was boosted
by an acquisition.
The payroll and human-resources outsourcing company, which
focuses on small and midsize businesses, has expanded its
full-service offerings, including the addition of products to help
clients comply with the Affordable Care Act.
For the fiscal first quarter ended Aug. 31, Paychex reported a
profit of $217.4 million, or 60 cents a share, up from $209.1
million, or 58 cents a share, a year earlier. The latest period
included a tax benefit of 2.5 cents a share, while the year-earlier
period included a tax benefit of 6 cents a share. Revenue increased
8.6% to $785.5 million.
Analysts polled by Thomson Reuters expected per-share profit of
57 cents and revenue of $783 million.
Paychex said revenue in its payroll business grew 4.3% to $450.9
million, as the company's client base continued to expand and
revenue per check improved thanks to price increases.
Human-resources segment revenue rose 15% to $322.6 million,
mostly the result of continued client base growth across the
company's main services.
In December, Rochester, N.Y.-based Paychex acquired Advance
Partners, a deal that expanded the company's presence in the
growing staffing outsourcing industry. The acquisition contributed
roughly 1% to payroll-service revenue growth and 2% to
human-resources revenue growth for the latest quarter.
Paychex shares edged up 3 cents to $60.30 in light premarket
trading. Through Tuesday's close, the stock was down 2.6% from its
all-time high in July.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
September 28, 2016 09:55 ET (13:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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