Paychex, Inc. Earnings Cheat Sheet: Profit Rises for Third Straight Quarter

S&P 500 (NYSE:SPY) component Paychex, Inc. (NASDAQ:PAYX) reported net income above Wall Street’s expectations for the first quarter. Paychex is a provider of comprehensive payroll, human resource, and benefits outsourcing solutions for small and medium sized businesses.

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Paychex Earnings Cheat Sheet for the First Quarter

Results: Net income for Paychex, Inc. rose to $148.9 million (41 cents per share) vs. $131.9 million (36 cents per share) in the same quarter a year earlier. This marks a rise of 12.9% from the year earlier quarter.

Revenue: Rose 9% to $563.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PAYX beat the mean analyst estimate of 38 cents per share. Analysts were expecting revenue of $554.1 million.

Quoting Management: Martin Mucci, President and Chief Executive Officer, commented, “We are pleased with our results for the first quarter. We continue to see positive trends in our checks per client. We remain cautiously optimistic about the remainder of the year, despite a lack of robust new business formation, which continues to impact the selling environment.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 2.9% and in the third quarter of the last fiscal year, the figure rose 16.6%.

Revenue has risen the past four quarters. Revenue increased 5.8% to $510.4 million in the fourth quarter of the last fiscal year. The figure rose 5.2% in the third quarter of the last fiscal year from the year earlier and climbed 3.5% in the second quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 33 cents per share.

Competitors to Watch: Automatic Data Processing (NASDAQ:ADP), CBIZ, Inc. (NYSE:CBZ), Equifax Inc. (NYSE:EFX), American Express (NYSE:AXP), McMillan Shakespeare Ltd. (NYSE:MMS), Blue Tax Group SA (NYSE:BTG), and Colliers SA Holdings Ltd. (NYSE:COL).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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