Paychex Earnings: Here’s Why Shares are Down Now
Paychex Inc. (NASDAQ:PAYX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.82%.
Paychex Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 0% to $0.34 in the quarter versus EPS of $0.34 in the year-earlier quarter.
Revenue: Rose 6.13% to $585.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Paychex Inc. reported adjusted EPS income of $0.34 per share. By that measure, the company missed the mean analyst estimate of $0.38. It missed the average revenue estimate of $585.96 million.
Quoting Management: Martin Mucci, President and Chief Executive Officer, commented, “Paychex closed the fiscal year with a strong fourth quarter. As anticipated, we saw improvement in payroll services revenue growth, which was 4% for the fourth quarter, up from 1% growth experienced for the first nine months of the fiscal year. Checks per payroll increased approximately 1% for the fourth quarter, as our rate of growth moderated from the higher levels experienced earlier in the year. Our Human Resource Services revenue continued to grow at a double-digit rate. Sales execution in the fourth quarter was strong, particularly in the small market and Human Resource Services. We finished the year with client retention at record levels.”
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