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S&P 500 (NYSE:SPY) component Paychex Inc. (NASDAQ:PAYX) reported its results 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 Inc. Earnings Cheat Sheet
Results: Net income for Paychex Inc. rose to $153.1 million (42 cents per share) vs. $148.9 million (41 cents per share) in the same quarter a year earlier. This marks a rise of 2.8% from the year-earlier quarter.
Revenue: Rose 2.9% to $568.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Paychex Inc. beat the mean analyst estimate of 41 cents per share. Analysts were expecting revenue of $557.7 million.
Quoting Management: Martin Mucci, President and Chief Executive Officer, commented, “The first quarter has fiscal 2013 off to a good start with results meeting our expectations. Our client base continued to improve, checks per payroll continued to increase, and our client retention is near a historic high. Growth rates reflect fluctuations in the frequency of payroll processing compared to the same period last year. For fiscal 2013, we have reaffirmed our financial guidance.”
The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 3.7% and in the third quarter of the last fiscal year, the figure rose 3.7%.
Revenue has risen for the last four quarters. Revenue increased 5.9% to $540.7 million in the fourth quarter of the last fiscal year. The figure rose 7.5% in the third quarter of the last fiscal year from the year earlier and climbed 7% in the second quarter of the last fiscal year from the year-ago quarter.
The company beat estimates last quarter after meeting expectations in the fourth quarter of the last fiscal year with net income of 34 cents per share.
Looking Forward: Expectations for the second quarter have not changed from 41 cents. In the past month, the average estimate for the fiscal year has fallen from $1.63 per share to $1.61.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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